The private equity firm skimped on the details, but confirmed it intends to bring back the specialty brand in some form, someday.
The retailer is looking for the activewear addition and investments in online shopping to improve traffic and lift sales.
Shares of the company fell sharply after the retailer’s outlook disappointed and weakness persisted.
Gildan executives said American Apparel can make good on their $88 million investment in the brand.
The company posted a $7.3M gain in connection with a settlement over unearned incentive compensation from former ceo Neil Cole.