Who Owns American Apparel?

American Apparel's sustainability profile is governed by Gildan Activewear's corporate responsibility framework. Gildan publishes an annual sustainability report aligned with Global Reporting Initiative (GRI) standards.

Gildan is not B Corp certified. Its manufacturing facilities in Honduras operate under the WRAP (Worldwide Responsible Accredited Production) certification program, which audits factories for compliance with labor law, safety, and environmental standards. Gildan's Honduras operations have maintained WRAP Platinum certification, the highest tier, for multiple consecutive years.

American Apparel garments are not certified organic by GOTS or OCS standards. Gildan has commitments to increase sustainable cotton sourcing through the Better Cotton Initiative (BCI), and some American Apparel products use BCI cotton, though product-level certification labeling is not applied to all items.

American Apparel's original domestic manufacturing in Los Angeles, with above-minimum wages and company-paid health benefits for workers, was a genuine ethical manufacturing differentiator at the time. Under Gildan ownership, that manufacturing model no longer applies. Workers in Gildan's Honduras facilities earn wages set under Honduran law, which are significantly lower in absolute dollar terms than US wages, though Gildan states they exceed local legal minimums.

Gildan Activewear received the WRAP Platinum certification for its manufacturing facilities in Honduras and Bangladesh. WRAP (Worldwide Responsible Accredited Production) is an independent apparel factory audit program. Gildan has received this certification consistently.

The original American Apparel company received recognition from the Los Angeles Business Journal and other regional publications for its employment of thousands of workers in downtown Los Angeles. Those awards relate to the pre-2016 company and are not current.

Sexual Harassment Allegations and CEO Termination (2014): The board of directors terminated founder and CEO Dov Charney in June 2014 following multiple sexual harassment allegations from former female employees. At least five former employees filed civil suits against Charney. The company's board cited the harassment investigations and other alleged misconduct as grounds for termination. Charney disputed the allegations and attempted to regain control of the company through investor actions, which were ultimately unsuccessful.

First Bankruptcy (2015): American Apparel filed for Chapter 11 bankruptcy protection in October 2015, disclosing approximately $390 million in liabilities. The company cited years of losses, high operating costs from its Los Angeles manufacturing model, and the management disruption from Charney's termination as contributing factors. The company emerged from this bankruptcy in February 2016 after restructuring.

Second Bankruptcy and Liquidation (2016): American Apparel filed for Chapter 11 protection a second time in November 2016, approximately eight months after emerging from the first filing. This second bankruptcy led to the closure of all retail stores, termination of approximately 2,400 employees, and the sale of brand assets to Gildan.

Controversial Advertising Campaigns: American Apparel's advertising campaigns were repeatedly banned by advertising standards bodies in the United Kingdom, Canada, and other markets for content regulators found to be sexually explicit or exploitative. The UK's Advertising Standards Authority banned multiple American Apparel advertisements between 2009 and 2014 for indecency or for using models who appeared underage.

Immigration Worksite Enforcement (2009): US Immigration and Customs Enforcement (ICE) conducted worksite enforcement actions at American Apparel's Los Angeles facilities in 2009, leading to the termination of approximately 1,800 workers who could not document legal authorization to work in the United States. The action drew public attention given American Apparel's marketing of its products as "Made in USA" by workers earning fair wages.

Department of Labor Wage Violation Investigations: The US Department of Labor investigated American Apparel multiple times during its independent operation for alleged wage and hour violations, including claims related to overtime pay and record-keeping. The company reached settlements in connection with some of these investigations.