The Doorbuster brand is getting ready to announce it will buy American clothing retailer American Apparel for $1,872 million, in a deal that could help boost its retail footprint in the United States.

    The company will continue to own and operate American App, but will now own its online marketplace and an e-commerce platform.

    “Doorbusters” will also sell shoes and accessories, said Dan Waddell, founder and chief executive of Doorbuster, which will be headquartered in Menlo Park, California.

    The deal, announced Thursday, follows a $1 billion buyout by Walmart of online apparel retailer Lululemon in December.

    The sale of American Appears to have generated the bulk of the transaction’s proceeds.

    “This transaction brings the company’s footprint to more than 100 million people, including the millions of Doorbusters who shop for clothes online,” Waddells said in a statement.

    American App has a store in more than 30 cities.

    “The acquisition of AmericanApp gives us greater control over how our products are distributed, with the possibility of a more streamlined customer experience, and a greater ability to bring in more shoppers with an enhanced assortment of merchandise,” Wadslow said in the statement.

    The Wall Street Journal reported the deal.

    The combined company will also offer a range of apparel online and through its own online platform, and the company will retain a stake in American App’s parent company, American App.

    American has about 200 stores in the U.S. and about 2,300 employees.

    It will retain most of its operations in New York City, Los Angeles and Boston.

    “American Apparel is one of the most popular brands in the country, and our new partnership with Doorbuster is a testament to its long-standing global reach,” said Jodi Zink, an executive vice president of global retail and merchandising at American App., in a phone interview.

    “It’s a great fit for our brands and the brand’s core business.”

    The deal comes after American App and its parent company Lulululeman said they planned to spin off American App into a separate entity.

    The parent company said it expects to complete the transaction by the end of 2019.

    The terms of the deal were not disclosed.


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