American Apparel, Ebay tie up for online store

NEW YORK: American Apparel has signed a multi-year partnership with EBay Inc to create a full online lifestyle shop as part of the retailer's efforts to tap new distribution channels.

The company, which has faced problems ranging from covenant breaches to immigration probes of its workers to shareholder litigation, expects the venture to become a 'multi-million dollar' business within the first year, it said in a statement.

“There are more than 30,000 searches for American Apparel on EBay each month and right now those customers are not buying from us directly,” American Apparel CEO Dov Charney said in the statement.

The store is slated to open in September and will offer a full assortment of products chosen by American Apparel, including hoodies and T-shirts.