mergers and acquisitions

American Apparel Bought a Small New York Boutique

Photo: Oak NYC

As WWD reports, American Apparel purchased the gothic-leaning New York retailer Oak. It’s a little random, since American Apparel’s aesthetic is more or less the opposite of what you find at Oak, which has become a go-to outpost for high-end, cutting-edge designers who make clothes that are black. But from both a business and creative standpoint, this seems like a really good partnership.

Oak, which currently has two locations — one in Greenpoint and one in Noho — will most likely expand thanks to American Apparel’s financial and manufacturing capabilities. Charney commented to WWD that he intends to double Oak’s current profit, which is about $5 million in sales right now. And given AA’s Los Angeles manufacturing center, Oak’s in-house line in particular (currently sold at places like Net-a-Porter) has the potential to grow in size and reach as well. Still, it seems like AA is getting a better deal: The company seems to be on better footing these days, especially after this purchase. And Charney said that he intends to look to Oak founders Louis Terline and Jeff Madalena for “advice on the American Apparel product.” Does this mean the porny vibe will go away? Say it ain’t so.

American Apparel Bought Small New York Boutique