American Apparel to Close All 110 of Its Retail Stores


American Apparel will be closing all 110 of its retail stores, as well as its Los Angeles headquarters.

The popular retailer, known for colorful cotton basics and its “Made in America – Sweatshop Free” logo, was acquired by Gildan Activewear on Jan. 10 for $88 million. At its peak in 2007, the bankrupt retailer was valued at $1 billion.

Gildan, a Canadian t-shirt and underwear maker, will reportedly close all American Apparel stores by the end of April. As many as 3,400 employees could lose their jobs.

“This was always about buying assets out of bankruptcy,” Gildan spokesman Garry Bell told the L.A. Times. “The reality is this wasn’t a purchase of an ongoing concern.”

American Apparel was founded in 1989 and known as much for its edgy marketing campaigns, often featuring edgy models in minimal clothing, as its controversial founder, Dov Charney.

Charney was outspoken about his support for worker rights and immigration reform, views which clashed with reports that he had sexually harassed and assaulted employees. In 2014, the board ousted Charney as chairman and CEO, citing the sexual harassment allegations and misuse of company funds.

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SOURCE: SF Gate, Michelle Robertson