After several reports of bankruptcy, American Apparel is officially shutting down its 110 retail stores and L.A headquarters
After a turbulant history of sexual assault claims from former CEO Dov Charney, ongoing bankruptcy rumours, and their highly controversial campaigns - American Apparel will offically be closing its doors for good. Late last week it was confirmed the brand's intellectual property and manufacturing equipment was auctioned off to Canadian label Gildan for $88 (US) million dollars. This will end the 20-year-run of one of the biggest American-made garment makers in the USA. Garry Bell from Gildan told LA Times: "This was always about buying assets out of bankruptcy," he explained. "The reality is this wasn't a purchase of an ongoing concern."
Gildan also bought inventory for an extra $15 (US) million dollars, which has concluded American Apparel's long and painful history in and out of courts. The bankruptcy auction didn't include retail however, which will now see 110 American Apparel stores closing by the end of April, according to The Huffington Post. This means a whopping 3,400 people could be out of jobs - but it is still yet to be confirmed what exactly is going to happen to the thousands of employees that work under the label.
The new Gildan manufacturers are also far from the "Made in USA" DNA the label use to pride itself on. For a starters, Gildan works out of Central America and the Caribbean, with only a few plants in the U.S. (that currently only produce socks). Lloyd Greif, Chief executive of Grief&Co explains, "they do have a plan, and that plan doesn't involve U.S. manufacturing and certainly not Los Angeles manufacturing."
So with a new Canadian core, the quintessential American Apparel will soon be gone for good. After a solid twenty years, we farewell American Apparel with a look back at their most controversial and provocative campaigns to date: