American Apparel Buys Oak NYC
Despite all of the financial troubles that American Apparel has faced over the past few years, it seems as if they’ve acquired a new retailer, Oak NYC. Dov Charney noted that Oak’s sales were around $5 million and that he believes they have the ability to grow multiple of that.
Oak began in 2005 with a store in Williamsburg, Brooklyn and today has locations in Greenpoint and Manhattan. The store is known for carrying brands such as Comme des Garcons, Rick Owens, Cheap Monday, Kill City & more. The New York store also has their own house label that has a fashion-forward aesthetic with an emphasis on jersey and drape fabrics. Product in the line ranges anywhere from $75-$1000 and is wholesaled to stores such as Net-a-porter, Saks Fifth Avenue and Selfridges. Since they have been acquired by American Apparel, a portion of production will be moved to the American Apparel Facilities in Los Angeles. Dov Charney is also looking to add additional Oak locations in places such as Seoul, where American Apparel has an empty space in a multi-level store, and Los Angeles.
Though American Apparel has not turned a profit since 2009, they are steadily increasing their sales. They have reported 25 consecutive months of same-store sales increases through June and for the first half, total same-store sales were up 7 percent and wholesale sales were up 9 percent. The acquisition could be a good move for the company as the Oak founders, Louis Terline and Jeff Madalena, will remain at the creative and operation helm of Oak, as well as advice on American Apparel product.
What do you think of American Apparel’s recent purchase? Do you think it will help the company stay afloat?