In its second-largest acquisition, Amazon buys the company for $970 million.
The deal with eBay is part of an aggressive expansion effort.
American Apparel Inc. in September will launch an online lifestyle shop on auction site eBay. The launch is part of the financially struggling apparel company’s efforts to aggressively expand into new markets and open new distribution channels.
American Apparel will offer a full assortment of its products on eBay, including hoodies, T-shirts, underwear, jeans and kids clothing.
Orders placed through the eBay store will be processed by eBay, but filled by American Apparel's Los Angeles factory. American Apparel says its well-known product images and brand will be prominently featured on the site.
American Apparel will use eBay’s marketing features, such as targeted e-mail, affiliate programs and personalization, to help promote American Apparel to a new audience of eBay shoppers, the apparel retailer says.
The new arrangement comes at a time American Apparel is looking to increase web sales.
For the second quarter ended June 30, American Apparel, No. 273 in the Internet Retailer Top 500, reported:
- Online sales increased 19%. Based on that percentage and other e-commerce data included in earlier financial reports, Internet Retailer calculates that e-commerce revenue grew year over year to about $20 million from $16.8 million.
- Total sales remained flat at about $132 million.
In addition to manufacturing, American Apparel also operates a wholesale business that supplies t-shirts and other casual wear to distributors and screen printers. It also operates 254 retail stores in 20 countries, including the U.S.