Phew: American Apparel Agreed to Sell Oak Back to Its Owners

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The founders of Oak got an early Christmas present this month. WWD reports that its troubled parent company American Apparel agreed to sell the business back to its original owners rather than liquidate, as court documents stated earlier this year. Jeff M. Madalena and Louis Terline had previously offered $600,000 to get it back; the article didn't state how much the two parties agreed upon.

This is just the latest update in the American Apparel's ongoing bankruptcy proceedings and subsequent reorganization. The plan includes closing eight additional stores across the country (including one in Jersey City at the Newport Mall by January 30th) after already closing a handful, including New York City locations like the Lower East Side and the Upper West Side.

So thankfully, the huge discounts being offered at all Oak locations right now (in New York, that's Greenpoint and Noho, plus two in LA) is just another really good end-of-season sale — and not a closing one.