American Apparel Is Not So American Now

Canada Is Kind Of Like America, Ehh?

American Apparel is that cool clothing company with the edgy, sexy ads, founded by the controversial Dov Charney. The company built its brand on the fact that their clothes were manufactured in the United States, far away from repressive overseas sweatshops. Gildan Activewear, a Canadian clothing wholesaler recently won American Apparel in a bankruptcy auction for $88m.

So What’s The Plan?

Gildan intends to stick to it’s wholesaling roots and steer clear of the costly retail outlets that American Apparel currently operates. They’ve indicated that American Apparel’s retail and online operations have 100 days and then it’s caput (shutdown)… Gildan also plans to shut down American’s Los Angeles based factories and distribution centers. The idea is to consolidate the back end operations of the two companies. This is a little concerning for the American Apparel brand since Gildan has been accused of exploiting its workers overseas.

Let’s Get This Straight

“American” Apparel is really Canadian Apparel, and the sweatshop free brand is now run by a company accused of exploiting its overseas factory workers? The PR and  Marketing folks are going to have their work cut out for them, ehh.

Martel