American Apparel is expected that the joint company set up with eBay's online store in the first year will become a 'million dollar' business. Currently, American Apparel is facing immigrant workers from the customer to breach of contract as well as shareholder litigation and a series of survey questions. Over the past three months, the American Apparel in the first half due to weak same-store sales and market concerns that the company will go bankrupt and other factors, the market value had fallen by more than one third.
American Apparel CEO Astoria check Tierney (Dov Charney) are expected, and eBay co-founder of the company's online store will open a new revenue channel. Check Tierney said in a statement: 'American Apparel on eBay every month search query more than 3 million times, and now consumers not to purchase products directly from us.'
This online store is scheduled to open in September, will provide American Apparel selected range of products such as hoodies and T-shirts. In the American Stock Exchange trading, American Apparel latest stock rose 9 percent to $ 1.12, up 12% of the maximum disk ago.
eBay expects the transaction will be completed in the third quarter. Held in February last year's analyst meeting, eBay said it has acquired 49% stake in Magento. According to Magento in March 2010 with the U.S. Securities and Exchange Commission (SEC) filed regulatory documents, eBay is the value of this investment $ 22.5 million.
Last month, eBay said the company may use the sale proceeds of $ 2.4 billion Skype shares part of the revenue for acquisition, especially in the acquisition of shopping and allows users to compare prices of tools. eBay's online auction service has been facing from Amazon and other more user-friendly site competition.
eBay said the acquisition transaction, and eBay open to independent research and development of a comprehensive business platform X. Commerce will allow the company to provide merchants and retailers, and online payment service other than the web site. eBay said the company will be held in October X. Commerce Innovate conference to announce more details.