American Apparel will be closing all 110 of its retail stores, as well as its Los Angeles headquarters.

The popular retailer, known for colorful cotton basics and its “Made in America – Sweatshop Free” logo, was acquired by Gildan Activewear on Jan. 10 for $88 million. At its peak in 2007, the bankrupt retailer was valued at $1 billion.

Gildan, a Canadian t-shirt and underwear maker, will reportedly close all American Apparel stores by the end of April. As many as 3,400 employees could lose their jobs.

“This was always about buying assets out of bankruptcy,” Gildan spokesman Garry Bell told the L.A. Times. “The reality is this wasn't a purchase of an ongoing concern.”

American Apparel was founded in 1989 and known as much for its edgy marketing campaigns, often featuring edgy models in minimal clothing, as its controversial founder, Dov Charney.

Charney was outspoken about his support for worker rights and immigration reform, views which clashed with reports that he had sexually harassed and assaulted employees. In 2014, the board ousted Charney as chairman and CEO, citing the sexual harassment allegations and misuse of company funds.

Following the Charney incident, the brand name took a serious hit, which led to a revolving door of higher ups and culminated in the brand filing for bankruptcy in 2015. Throughout this time, Charney was fighting his ousting in the courts. Currently, he is working on a clothing startup.

The brand ultimately failed to close enough stores and adapt to the demands of the fast-fashion industry, with teens turning to cheaper retailers, like H&M and Forever 21. American Apparel filed for bankruptcy again last November.

Gildan will likely not produce any American Apparel products in California, but could manufacture items in cheaper states.

“The political climate in the U.S. has made things very fluid for a lot of companies,” Bell told the LA Times. “We will evaluate all these options.”

As the stores close, the company’s goods will likely get picked up by wholesale buyers. These items will still carry American Apparel tags, but at a lower cost.

Gildan sells clothing through other retailers, such as Target and K-Mart, and the fate of the American Apparel brand will likely follow a similar path.

Read Michelle Robertson’s latest stories and send her news tips at mrobertson@sfchronicle.com.