American Apparel Shut Down
By Cassandra Bramasco (Staff Writer) -2/24/17
Clothing brand American Apparel, based in Los Angeles, will be closing all 101 US store locations and will be shutting down their sweatshop free factory by the end of April due to the company being sold off.
American Apparel is known for their made in the US products. They sell clothing ranging from bodysuits to mini skirts to denim jackets. Senior Julia Tocher expresses, “The prices were high, but wow, the clothes were cute.”
Senior Viridiana Montoya also agrees that the clothes were expensive. “They have nice stuff, but you could get similar things at thrift stores for less.”
Canadian Brand Gildan Activewear won an auction to buy the brand and manufacturing equipment for $88 million. The factory, located in Los Angeles, will be shutdown and about 3,400 American factory positions will be lost. Tocher explained, “It sucks a lot that so many people will lose their jobs…it gave jobs to immigrants, and it’s going to be difficult for those who work there to live now.”
American Apparel filed for bankruptcy for the second time in the fall of 2015 and was $101 million dollars in debt. A problem that led up to the company’s fall was an immigration inspection in 2009 that had over 1,500 skilled workers fired and this created a dent in the company’s product supply.
Another problem the company faced was that they opened many store locations within the same radius in areas with high rent. At one point there were sixteen locations in Manhattan alone. This led locations to fail at making enough sales to pay for the high rent prices.
Tocher continued that she’ll miss the atmosphere of the store. “I’d walk in and automatically feel really welcomed by the employees.” Montoya adds that she’ll miss American Apparel’s downtown flea market where she bought several articles of clothing.
American Apparel is currently having a closeout sale where everything is 40% in stores and online. Montoya states, “Might as well stock up on some items that you can’t get from other stores.”