American Apparel
 | |
| Type | Clothing brand[1] |
|---|---|
| Founded | 1989[1] |
| Founder | Dov Charney[1] |
| Products | T-shirts, sweatshirts, jeans, undergarments, and accessories[1] |
| Industry | Apparel[1] |
| Website | Our story |
American Apparel is an American clothing brand. Its history began with Dov Charney's T-shirt business in 1989 and became associated with Los Angeles manufacturing, basic garments, and provocative advertising. After expanding from wholesale into retail, the company underwent two Chapter 11 bankruptcy proceedings before Gildan Activewear agreed to buy intellectual-property rights related to the brand and certain assets in 2016.[1]
History
In 1989, Charney began selling T-shirts from his dorm room at Tufts University. After moving to Los Angeles in 1997, he developed the business as a wholesale supplier of blank T-shirts and related garments. The company opened its first store in 2003 and had expanded to 143 stores in 11 countries by 2007, selling clothing and accessories for men, women, and children.[1]
The early business combined basic products with domestic manufacturing. Its Los Angeles operation was described as paying higher wages and providing benefits, while the company presented the model as a challenge to prevailing labor practices in the local garment industry. By 2007, it was described as the largest T-shirt manufacturer in the United States and was selling approximately $125 million worth of domestically manufactured clothing outside the country.[1]
Brand and advertising
American Apparel's basic garments were paired with a deliberately provocative visual identity. Its advertising used street casting and selected subjects through online submissions, word of mouth, and retail stores; some of the people featured were employees or friends of the company. The campaigns favored candid, amateur-style photographs over polished fashion imagery and frequently showed lightly dressed models.[1]
The advertising drew sustained criticism. The United Kingdom's Advertising Standards Authority repeatedly banned advertisements that it considered to sexualize models who appeared underage or to place them in vulnerable positions. One published account also reports that former employees filed sexual-harassment lawsuits against Charney; the company's board suspended him in 2014 amid an investigation into alleged misconduct, and he was fired in December of that year.[1]
Corporate decline and relaunch
The company's financial difficulties became public in 2009, when it accepted an $80 million investment from Lion Capital and dealt with the consequences of an immigration investigation at its Los Angeles factory. Later analysis attributed the decline to debt, costly retail expansion, and a product model that introduced too few new styles for a fast-fashion market.[1]
American Apparel filed for Chapter 11 bankruptcy in 2015 after reporting that it had not made a profit since 2009. The New York Stock Exchange suspended trading in the company's shares and began delisting proceedings. The company filed for bankruptcy protection again in 2016. Gildan Activewear agreed to purchase intellectual-property rights related to the American Apparel brand and certain assets for approximately $88 million, without acquiring the retail stores; the stores were subsequently closed.[1]
In 2017, the brand's e-commerce site reopened with a renewed focus on basic garments. Some manufacturing moved overseas, including to Honduras, while products made in the United States remained available. The current brand presentation emphasizes timeless style, premium quality, durability, and a Made with Respect initiative focused on sustainability and industry standards.[1][2]