Who Owns American Apparel?

American Apparel was founded in spring 1989 by Canadian businessman Dov Charney in Los Angeles, California. The company initially distinguished itself through vertically integrated manufacturing, producing most of its clothing in-house at facilities in Los Angeles. This approach allowed the company to maintain quality control and market itself as a "Made in USA" brand, appealing to consumers concerned about ethical manufacturing and domestic production. This vertically integrated business model was revolutionary in the apparel industry at the time, demonstrating how domestic manufacturing could compete with offshore production while maintaining quality standards and ethical labor practices.

Throughout the 1990s and 2000s, American Apparel grew into a significant player in the basic apparel market, known for its simple, high-quality clothing basics and distinctive advertising campaigns. The company expanded internationally and became recognized for its focus on ethical manufacturing practices and fair labor standards. American Apparel's marketing approach emphasized natural beauty, diversity, and provocative imagery that set it apart from traditional apparel advertising, creating a distinctive brand identity that resonated with young, socially conscious consumers.

The company's vertically integrated model was both a strength and challenge, providing quality control but also creating higher operational costs compared to competitors who outsourced manufacturing. Despite these challenges, American Apparel built a strong brand identity and loyal customer base, particularly among young consumers who appreciated the company's ethical stance and distinctive aesthetic. The company's success demonstrated that there was a market for ethically produced, domestically manufactured clothing, even at premium price points, and that consumers would support brands that aligned with their values.

In 2014, founder Dov Charney was fired from the company amid allegations of misconduct and management issues. The company filed for Chapter 11 bankruptcy protection in 2015 due to financial difficulties, operational challenges, and increased competition from fast-fashion retailers. Gildan Activewear acquired American Apparel's assets in 2015, restructuring the company and shifting much of its manufacturing to facilities in Honduras and Nicaragua while maintaining the brand's identity and market presence. This acquisition and restructuring represented a new chapter for American Apparel, allowing the brand to continue operating under more sustainable business practices while maintaining its core brand values and market positioning.