Many have heard of American Apparel — the clothing store that manufactures, distributes and sells basic apparel. You may walk by one of the many retail stores in the city and may even be wearing it. But the products sold at American Apparel are not worth the money.
American Apparel has built its brand on selling t-shirts, sweatshirts, pants and even racy advertisements for people of all ages. Founded over a decade ago, it currently has over 200 stores in 20 countries and seemingly too much debt to calculate. The clothing from American Apparel is nothing more than mere textile designs and the occasional printmaking. Textile designs are relatively cheap garments to produce, as they are simple designs in solid colors that require minimal testing for quality control. With infrequent turnover of designs and nonexistent markdowns, the company was predestined for failure.
Most recently, American Apparel’s stock has hovered in the $0.90 range. Sales have been down in prior quarters and its debt keeps rising as American Apparel’s liquid funds deteriorate. About six months ago, Canadian-based investors put funds into the company, though recent reports speculate that those investors might be looking to sell their shares in the company.
Native Canadian Dov Charney, CEO and founder of American Apparel, is arguably one of the most controversial CEOs in the industry with a slew of sexual harassments suits filed by employees on his record.
American Apparel holds a provocative and racy image among the general public because of their advertisements and marketing initiatives. At Fashion’s Night Out every fall in New York, American Apparel traditionally has customers interested in being models take snapshots for a modeling contest. The attendees who participate in the contest have their snapshots sent to the casting office and the winner gets placed in an advertisement — an advertisement rated PG-13 at minimum, of course. It is an embarrassment that this company has built its image on the degradation of young people in their advertisements. There is a fine line between artistic and lewd marketing, and our society should not accept the latter.
American Apparel produces its garments in the United States and does not employ sweatshop labor — but that does not excuse the company for reportedly hiring thousands of unauthorized employees. A non-sweatshop environment does not rule out potential disasters like the recent death of an American Apparel factory worker caused by a knitting machine.
Given the circumstances, it appears as if American Apparel won’t be around for much longer. As for the avid American Apparel shoppers, there is no need to be concerned — I am sure competitors with sounder finances are awaiting your business with open arms. As for the hipsters who are now worried about where their extensive collection of plain tees and tube socks will come from, I’m confident you can find another retailer that is more authentic than American Apparel could ever be.