American Apparel, once a popular clothing brand known for its “Made in USA” ethos and provocative advertising, has faced numerous challenges over the years. Founded in 1989 by Dov Charney, the company quickly grew to prominence with its unique approach to manufacturing and marketing. However, financial difficulties and controversies surrounding its founder led to significant changes for the brand.
Is American Apparel still in business? Yes, American Apparel is still in business, but it operates under different circumstances compared to its peak years. In 2017, the brand was acquired by Gildan Activewear, a Canadian company, after filing for bankruptcy twice in 2015 and 2016. Gildan has since relaunched American Apparel as an online-only retailer, focusing on its core values of ethical manufacturing and high-quality basics.
The Rise and Fall of American Apparel
During its heyday, American Apparel was known for its vertically integrated business model, where all aspects of production, from design to manufacturing, were done in-house in Los Angeles. This model allowed the company to quickly respond to fashion trends and maintain high standards of quality. However, financial mismanagement and legal issues, particularly those involving founder Dov Charney, led to the company’s decline.
In 2014, Charney was ousted from the company amid allegations of misconduct. Despite efforts to revitalize the brand, American Apparel filed for bankruptcy in 2015. A second bankruptcy filing followed in 2016, leading to the eventual sale of the company’s assets to Gildan Activewear.
American Apparel’s New Direction
Under Gildan’s ownership, American Apparel has shifted its focus to online sales, closing its physical stores. The brand continues to emphasize its commitment to ethical manufacturing, although production has been moved outside the United States. Gildan has maintained the brand’s identity, offering a range of basics like t-shirts, hoodies, and leggings, while also expanding its product line to include more diverse styles.
While American Apparel no longer operates as an independent entity, its legacy continues through Gildan’s efforts to preserve the brand’s core values. The shift to an online-only model has allowed the company to reach a global audience, ensuring that American Apparel remains a recognizable name in the fashion industry.
Overall, American Apparel’s journey has been marked by significant ups and downs. Despite the challenges, the brand has managed to survive and adapt to changing market conditions, continuing to offer its signature products to consumers worldwide.