American Apparel

American Apparel is an American clothing manufacturer, designer, distributor, marketer and retailer based in Los Angeles, California. Founded by Dov Charney in 1989, it is a vertically integrated company that is one of the largest apparel manufacturers in North America.

The company, which has not made a profit since 2009, filed for chapter 11 bankruptcy in the U.S. on October 5, 2015 in the United States Bankruptcy Court for the Central District of California. It has been reported that the brand has agreed a plan with its creditors to convert $200 million of debt into equity, $90 million in debtor financing and $70 million in new capital.

Company history

American Apparel was founded in 1989 by Canadian Dov Charney.

In 1997 after a variety of iterations, including a period of manufacturing in South Carolina, the company moved to Los Angeles. Charney began to sub-contract sewing with Sam Lim who, at the time, had a shop with 50 workers under the Interstate 10 freeway in east LA. Months later the two became partners. In 2000 American Apparel moved into its current factory in downtown Los Angeles where it continued to grow primarily as a wholesale business, selling blank T-shirts to screenprinters, uniform companies and fashion brands. After its experience as a wholesale brand, the company moved into the retail market. The company was ranked 308th in Inc.'s 2005 list of the 500 fastest growing companies in the United States, with a 440% three-year growth and revenues in 2005 of over US$211 million.