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American Apparel is laying off hundreds of employees

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American Apparel

(Reuters) - Teen apparel retailer American Apparel is laying off hundreds of workers as it overhauls its production process, which could include outsourcing part of its production to another U.S. manufacturer, the Los Angeles Times reported on Tuesday.

"If we do decide to produce some pieces out-of-house, they will still be American-made," Chief Executive Paula Schneider wrote in a letter obtained by the Times.

Schneider said a mismatch between workers and manufacturing was an inefficiency that needed to be addressed as part of the company's turnaround efforts, the Times reported, adding the move came after "months of careful and rigorous review." 

The retailer will also cut down on the number of garments it makes throughout the year, to clear inventory.

As part of the layoffs, which started last week, about 500 employees have lost their jobs, the newspaper said.

An American Apparel spokeswoman declined to comment.

The fashion chain, known for its "Made in the U.S.A." fashion, filed for bankruptcy in October following years of losses and expects to be profitable in 2018. 

(Reporting by Arunima Banerjee in Bengaluru; Editing by Peter Cooney)

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American Apparel is now crowdsourcing accessories

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american apparel

American Apparel is trying something new to get people to shop there again: it's crowdsourcing.

The retailer is letting small businesses and vendors pitch their products in 90-second videos for the chance to be sold at American Apparel, the company announced Wednesday.

The company is calling the project Made In.

"Cutting and sewing 100% of our garments in America is at the core of our DNA," American Apparel Senior Vice President of Marketing Cynthia Erland said in a statement. "We want to continue to support manufacturing in the US by giving small businesses the opportunity to thrive and succeed."

There are stipulations to enter the running: the products have to be made in the United States, sell for less than $100, and vendors need to be able to ship 500 units to the company's distribution center within a 30-day period. Participants need to submit the video by June 17th.

The company claims this isn't a contest.

Designed, cut & sewn in Downtown LA. #AmericanApparel #MadeInUSA

A photo posted by American Apparel (@americanapparelusa) on Mar 30, 2016 at 11:03pm PDT on

American Apparel has made other efforts to improve its business.

A few months ago, the company launched a partnership with Postmates for rapid delivery. While that effort appeared to be more about keeping up with the demands of today's consumers, the Made In project seems to be about cementing American Apparel's identity.

The company has been coming off of some tough times.

The retailer filed for Chapter 11 bankruptcy in October, though a US Bankruptcy Court judged had approved a plan to reorganize, the Los Angeles Times reported in January.

A previous version of this story said American Apparel was crowdsourcing clothing. It is only crowdsourcing accessories.

SEE ALSO: America's definition of sexy has changed, and retailers are toning it down

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American Apparel founder Dov Charney is back with a new T-shirt business he says is already worth $30 million

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Dov Charney, the founder of American Apparel who was forced out of the company in a 2014 boardroom coup, has a new gig: He has started a T-shirt company with some of his old colleagues from American Apparel and is already shipping merchandise. Charney believes he can hit revenue of $30 million with a year, he told Business Insider.

Charney declined to say the name of his new brand, though he has begun publishing photos on a website titled "That's Los Angeles." His brand will be inspired by the small, independent, immigrant, and working-class retail shops of the less glamorous side of Los Angeles typified by these photos:dov charney"I have a secret factory, I don't subcontract," he says. "I have about 40 workers."Dov CharneyRight now there is no internet site and no consumer retail side of the business. He is only shipping wholesale orders to customers who know him personally.Dov CharneyInitially, Charney is focusing on T-shirts — the product he launched American Apparel with in the 1980s. "We've developed some new shapes and new bodies," he said. "T-shirts are very specific. Two T-shirts look the same from afar, but up close it's two different movies. There is something different about them even when they are the same brand, same size, same color."Dov CharneyAmerican Apparel T-shirts became popular because Charney pioneered a tight, fitted shirt in an era (the 1990s and early 2000s) when most T-shirts were baggy. He also gave men's versions longer torsos for a more flattering look. Now, Charney told us, he is trying to find a new T-shirt fit "for the next decade."Dov CharneyCharney is keeping the "made in Los Angeles" ethos that he championed with American Apparel by refusing to employ overseas garment workers even though doing so would cost less. He believes owning a factory in the US with properly paid employees lets him turn around orders faster, and in smaller custom batches, than if he had to order them from Vietnam.Dov CharneyThe business will be built around "rapid reaction" and "dynamic supply"— a market in which a vertical garment manufacturer in Los Angeles can still beat a cheaper, larger one in China.Dov CharneyHe has a small amount of investor financing. Some of his financing has come from his own workers, who have made a loan to the company. Charney says he intends to eventually offer those workers equity in the company. He declined to reveal specific numbers.Dov CharneyCharney will also be seeking investors from Main Street, possibly via crowdsourcing, because institutional investors are too scared to be involved with him anymore. (Charney's marketing at American Apparel was hypersexual, and he was sued several times by employees who alleged harassment, though all of those suits were settled or thrown out.)Dov Charney"Certain institutional investors are scared based on — I'm not the most institutional option, you know what I mean?" he said. "The unpredictable nature of my business and the manner in which I carry out my affairs and my whole contrarian vision it's not conducive to the institutional model ... They're looking for predictability, and my whole business thrives on unpredictability."Dov CharneyWe asked Charney whether he had also changed his personal behavior. At American Apparel he often dated the models who appeared in his campaigns, a habit that attracted negative publicity. Charney felt that his personal life was nobody else's business.

"I'm sticking to my first principles," he said. "I don't believe my behavior was bad. I don't think I was a bad person. I'm passionate. I'll tell you how I roll — it's a lot of work. There's not a lot of time for play. It's a seven-day, 365 effort. There's a myth and there's a reality. There's also the reality of a man's age, you know? I'm 47. I don't think I could keep up with the myth even if wanted to."Dov Charney

SEE ALSO: Inside the 'conspiracy' that forced Dov Charney out of American Apparel

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Amazon is in talks to buy bankrupt American Apparel (AMZN)

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An American Apparel store logo is pictured on a building along the Lincoln Road Mall in Miami Beach, Florida March 17, 2016. REUTERS/Carlo Allegri

Online retailer Amazon.com and teen apparel store chain Forever 21 are among the companies weighing offers to acquire bankrupt American Apparel, people familiar with the talks said on Wednesday.

The bankruptcy auction of Los Angeles-based American Apparel, which made its branding theme "Made in the U.S.A", will determine the future of a major clothing manufacturing plant in California, one of the most expensive U.S. states in terms of labor costs.

Keeping jobs in the United States has become a hot button political issue since the presidential election. Ford Motor Co on Tuesday reversed plans for a $1.6 billion factory in Mexico and said it would add 700 jobs in Michigan after receiving criticism from President-elect Donald Trump.

Amazon and Forever 21, as well as California-based apparel maker Next Level Apparel and brand licensor Authentic Brands Group, are in talks with American Apparel and its financial advisers about submitting offers ahead of a deadline on Friday, the people said.

Any successful offer would have to top a $66 million stalking horse bid by Canadian apparel maker Gildan Activewear Inc, which American Apparel agreed to when it filed for bankruptcy in November.

Gildan's offer included an option to keep American Apparel's manufacturing plants in southern California, which employ about 3,500 workers, making American Apparel one of the biggest garment makers in the United States.

But Gildan plans to preserve only some of the California production should its bid prevail, the sources said. Many of Gildan's production facilities are in low-cost countries.

An outcome in the auction is expected next week, the sources said, asking not to be identified because the deliberations are confidential.

American Apparel declined to comment. Amazon, Forever 21, Next Level Apparel and Authentic Brands did not respond to requests for comment.

A Gildan spokesman said in an email on Wednesday that it is putting together all the necessary information from its due diligence to best position itself in the auction.

Amazon's acquisition of American Apparel would be a major push for the e-commerce company into branded fashion and apparel. The Seattle-based company began to launch private label brands last year.

Forever 21, founded by Korean-American Do Won Chang, is known for its low retail prices, helped by lower labor costs abroad. American Apparel's first bankruptcy in 2015 was due in part to its relatively high labor costs.

 

Sweatshop free

American Apparel went into bankruptcy for the second time last November with about $177 million in debt. Former Chief Executive Dov Charney founded the company in the late 1990s, when most garment-making was moving offshore.

Jeff BezosFor years this contrarian strategy worked. American Apparel's "sweatshop-free" label was a hit with young people, helping make the brand a part of popular culture.

Part of American Apparel's name recognition also stemmed from Charney himself, who was outspoken on immigration and fair wage issues, but was plagued by sexual harassment claims, which he has denied. The company was also famous for its sexually charged advertising.

A 2009 run-in with Immigration and Customs Enforcement over the legal employment status of 1,800 employees sent American Apparel on a downward trajectory, according to court documents from the company's 2015 bankruptcy.

American Apparel had to fire these employees, more than a quarter of its manufacturing workforce. The layoffs caused production delays and a 90 percent year-on-year drop in profits in 2009, according to the documents.

Charney was ousted in 2014, by which time the company was struggling with declining sales and an unsustainable debt load. It filed for bankruptcy in October 2015, and emerged in February 2016, only to seek bankruptcy protection once again in November 2016.

American Apparel has notified its workers that they could be losing their jobs as early as this month.

Gildan makes most of its garments offshore, with close to 90 percent of its 42,000 employees in low-cost Caribbean and Central American countries. In California, the minimum wage is scheduled to rise to $15 per hour in 2022 for firms with 26 employees or more.

Gildan has yarn-spinning and distribution centers in cheaper parts of the United States, including North Carolina and Georgia. Gildan's bid for American Apparel does not include the retail chain's approximately 110 stores.

(Reporting by Jessica DiNapoli and Lauren Hirsch in New York; Additional reporting by Allison Lampert in Montreal and Mary Milliken in Los Angeles; Editing by Bernard Orr)

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Amazon's rumored bid for American Apparel could solve its Trump problem in one master stroke (AMZN)

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Amazon CEO Jeff Bezos

Amazon is reported to be in the running to acquire American Apparel's bankrupt business.

The rumored deal immediately raised speculation about Amazon's growing ambitions in the fashion business.

But an acquisition of the struggling clothing retailer could also solve one of Amazon's biggest ongoing problems: tension with President-elect Donald Trump.

Trump, who frequently criticized Amazon during his campaign, won his way to the White House in large part by promising to keep manufacturing jobs in the US. He has already taken credit for keeping thousands of jobs from moving overseas at companies including Carrier in Indiana.

American Apparel, best known for its "Made in the USA" slogan, says it's the largest clothing manufacturer in North America. With 4,500 workers employed, it also calls itself the "largest sewing facility in North America."

So by acquiring American Apparel, Amazon could save thousands of US manufacturing jobs and win Trump's support.

With the starting price to buy part of American Apparel currently at $66 million, according to Reuters, Amazon could score a big win by spending a relative pittance (Amazon had roughly $12 billion in cash on its balance sheet at the end of the most recent quarter).

Of course, there are a lot of unknowns in Amazon's reported bid, and it's unclear whether Amazon even wants to buy American Apparel's manufacturing facilities. The only official bid, from the Canadian clothing brand Gildan, just includes the rights to American Apparel's brand, with an option to buy its manufacturing operations and inventory. Gildan's bid doesn't include American Apparel's 110 retail stores, according to Reuters.

Also, Amazon may have to convince shareholders of the logic behind acquiring a failing apparel business that has hundreds of million dollars in debt. With Amazon reportedly accelerating its investments in other areas, like logistics and grocery stores, investors may not welcome the idea of taking on American Apparel's mounting losses.

Screen Shot 2017 01 04 at 4.36.01 PM

But if Amazon could somehow pull off a deal for all of American Apparel's factories and retail stores, there are a lot of other potential business benefits to go along with the political and public-relations benefits, especially given that Amazon is forecast to pass Macy's as the top US apparel seller in 2017. Some of them include:

- Increased brick-and-mortar presence: Amazon has been introducing private-label brands over the past year. Having a physical space to showcase its product could significantly increase its sales and brand awareness.

- More channels to promote Prime: Amazon has already made its bookstores pretty much Prime-exclusive, making it another channel to promote Prime's many benefits. Also, one of its private-label brands, Buttoned Down, is available only to Prime members. American Apparel's retail network could help Amazon promote Prime in other parts of the US.

- Solves the biggest structural flaws of online apparel sales: Most people still want to try on clothes before buying them online. They also like to return to a physical store. Ownership of American Apparel stores would solve both problems.

This certainly makes for a very interesting play in Amazon's growing ambition in fashion retail. But it could also very well just be one of the many speculations involving Amazon. In 2015, for example, Amazon was reported to be in the running for Radio Shack, which turned out to be just a rumor.

Amazon's representative wasn't immediately available for comment.

SEE ALSO: Trump warned Amazon would have 'problems' under his presidency — here's what could happen

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Canadian apparel maker Gildan is buying American Apparel for $88 million

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American Apparel

(Reuters) - Canadian apparel maker Gildan Activewear Inc said it had won a bankruptcy auction to buy U.S. fashion retailer American Apparel for about $88 million in cash.

The deal is subject to approval from a bankruptcy court on Thursday, the company said.

Under the deal, Gildan will acquire the intellectual property rights related to the American Apparel brand and certain manufacturing equipment. The company , however, will not buy any of the 110 American Apparel retail stores.

Reuters reported late on Monday that Gildan had won the auction, which also attracted other bidders such as California-based apparel maker Next Level.

Guggenheim Securities, LLC is acting as Gildan's financial adviser, while Sullivan and Cromwell LLP are providing legal advice. 

(Reporting by Siddharth Cavale in Bengaluru; Editing by Shounak Dasgupta)

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American Apparel denies reports that it's imminently shutting down all of its stores

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American ApparelAmerican Apparel isn't shutting down all its stores — at least not yet, despite some reports saying otherwise.

The bankrupt company recently reached a deal to sell intellectual property and other assets to Canadian company Gildan Activewear.

The deal did not include American Apparel's 110 stores.

Without a buyer for the stores, American Apparel will likely be forced to eventually shut them down.

But that won't happen for at least another three months under a 100-day license with Gildan, American Apparel spokeswoman Arielle Patrick told Business Insider. The company hasn't shut down any stores since the nine closures it announced in October, she said.

It's unclear what will happen to the stores once the license expires. Patrick declined to comment further. Gildan did not respond to a request for comment.

Gildan spokesman Garry Bell told Bloomberg, however, that the company never intended to acquire American Apparel's stores.

"We’ve never been in a position to be able to assume operations," Bell said. "We’re not buying an ongoing concern."

If American Apparel closed all its stores, about 2,000 workers would be laid off.

The company has already started laying off about 2,400 employees in Southern California who worked at its headquarters and nearby factories, which were also omitted from the deal with Gildan, according to The Los Angeles Times.

Regardless of the retailer's fate, customers can expect to see deep discounts in stores and online over the next couple months. On Tuesday, the website was running a 40% off sale on its entire website. 

SEE ALSO: A giant wave of store closures is wreaking havoc on shopping malls

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8 retailers that are shrinking across America (M, SHLD)

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A customer exits the Macy's flagship department store in midtown Manhattan in New York City, November 11, 2015.  REUTERS/Brendan McDermid

Analysts predicted that 2017 would be a rough year for retail stores.

Just a month and a half into the new year, that prophecy has proven to be true. 

A wave of store closures has hit traditional retail chains, especially those with a high proportion of locations in malls.

Many chains that are closing stores are also facing a very real threat of bankruptcy.

Here are eight retailers that are disappearing across the US. 

SEE ALSO: 26 retailers that still sell Ivanka Trump's fashion brand despite boycotts

The Limited

The women's clothing retailer shut down all 250 of its stores in early January. 

"We're sad to say that all The Limited stores nationwide have officially closed their doors," the company said in an online statement. "But this isn't goodbye. The styles you love are still available online — we're just a quick click away 24 hours a day."



Macy's

Macy's is closing 68 stores and laying off nearly 4,000 employees, beginning in early 2017. Ultimately, the retailer plans to shut down about 100 stores, or 15% of its store base, over the next couple of years.

The retailer has struggled to keep up with the rise of e-commerce. In early February, the Wall Street Journal reported that Macy's had received a takeover offer from Canadian retailer Hudson's Bay.



Sears

Sears plans to shutter 108 Kmart stores and 42 Sears stores by April.

Sears' downward spiral has analysts speculating that the company will file for bankruptcy and some of the brand's suppliers already cutting back on shipments. 



See the rest of the story at Business Insider

JCPenney's store closures could push hundreds of dying shopping malls over the edge (M, SHLD, JCP)

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dead mall

A tidal wave of store closures is about to hit the US, experts say, and the result could be catastrophic for hundreds of lower-tier shopping malls.

JCPenney announced Friday that it would close up to 140 stores in the next couple of months.

That follows decisions by Macy's and Sears to close a collective 218 stores in the first half of the year. Other mall-based stores including American Apparel, The Limited, Bebe, BCBG, and Payless have also recently announced that they are shutting down all or most of their stores.

The rate of closures is higher than in previous years, signaling a new reality for the retail industry that consists of far fewer stores and, ultimately, fewer shopping malls.

"The signal sent by this [JCPenney] announcement: retailers are going to continue aggressively culling stores to appease Wall Street," said Ryan McCullough, a senior economist for the commercial real-estate firm CoStar Group.

Most of the stores that close will likely be located in lower-tier shopping malls — those referred to in the industry as B-, C-, and D-level malls. These shopping malls are already struggling, and many contain storefronts that have already gone dark.

About 338 malls in the US, roughly 31% of all malls, are rated C-quality or lower, according to the real-estate research firm Green Street Advisors.

The loss of department stores like JCPenney, Sears, and Macy's will likely plunge many of these malls further into distress and put some out of business. That's because department stores, also known as mall anchors, take up the large, multistory buildings at shopping center entrances that are responsible for large portions of mall traffic and rental income.

"These B- and C-level malls are going to get increasingly dark and less appealing because they don't have as much to offer," said Mark Cohen, the director of retail studies at Columbia Business School. "That creates a cycle of lack of investment, and eventually they will turn dark and dingy. Some mall owners will try to redevelop, and others will go into default."

Dying mall Regency Square

Meanwhile, A-level malls, which are home to higher-end department stores like Nordstrom and Saks Fifth Avenue, are enjoying some of the highest occupancy rates and healthiest sales productivity in years.

The losses hitting lower-quality malls will likely have little to no effect on the highest tier of shopping centers.

"The polarization between good and bad centers is intensifying," McCullough said.

In rare cases where A-quality malls have been hit with closures, the mall owners are often able to find even more productive replacement tenants, like restaurants, movie theaters, or other retailers.

But the same can't be said for lower-tier malls.

"Class B and C malls have not been as successful replacing the anchors and are resorting to non-retail tenants to prop up cash flows," McCullough said. "We expect that there will be a lot more attrition in the B/C mall segment over the coming years."

Cohen said the announcements from JCPenney, Sears, Macy's, and others are just the beginning of what could be an onslaught of additional closures this year.

"I think there are going to be hundreds and hundreds of stores closings that haven't been announced yet by these department stores for the rest of the year," Cohen said. "There's going to be an endless train of announcements."

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13 retailers that are dying and taking the fashion industry with them (M, SHLD)

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jcpenney shoppersThe retail apocalypse has descended on America.

More than 3,500 stores are expected to close across the US in the next couple of months, with some of the most iconic American fashion brands shuttering locations. 

Retailers like Macy's, Bebe, and Payless are all closing dozens — or even hundreds — of stores in 2017.

As mall traffic declines and e-commerce grows, many fashion brands have struggled to keep up. 

Here are 13 retailers that are disappearing across the US, as store closures sweep the country. 

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Payless

Stores closing: 1,000

The discount shoe retailer said Tuesday that it had filed for Chapter 11 bankruptcy protection and would immediately close 400 stores in the US and Puerto Rico. Additional store closures are likely.

Payless has been in talks with its lenders for months over a restructuring plan that at one point included closing as many as 1,000 stores, or a quarter of the company's locations. Currently, Payless has about 4,400 locations worldwide, including 3,600 in North America.

The Chapter 11 filing reports less than $1 billion in assets and $10 billion in liabilities. 



The Limited

Stores closing: 250

The women's clothing retailer shut down all 250 of its stores in early January. 

"We're sad to say that all The Limited stores nationwide have officially closed their doors," the company said in an online statement. "But this isn't goodbye. The styles you love are still available online — we're just a quick click away 24 hours a day."



Wet Seal

Stores closing: 171

The struggling teen retailer is closing all of its stores, the company announced in late January. 

The closures come two years after Wet Seal closed 338 of its then-511 stores in January 2015, shortly before the company filed for bankruptcy protection. At the time, Wall Street analysts said that falling foot traffic at shopping malls played a major role in Wet Seal's death spiral.



See the rest of the story at Business Insider

American Apparel's founder had a surprising response when asked if he's having sex with employees at his new company

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Dov Charney

American Apparel founder Dov Charney has started a new wholesale clothing company called Los Angeles Apparel. 

Charney started the company late last year, two years after he was forced out of American Apparel following a string of sexual harassment allegations lodged against him by several of his own employees.

In a new interview with Bloomberg's Matthew Townsend, Charney was asked whether he is "going down the same path at Los Angeles Apparel and hooking up with employees." 

Surprisingly, Charney deflected the question and didn't deny any sexual involvement with workers. Instead he responded cryptically, "That question is private, and it should be private." 

When asked if he's being "more careful," he said,"You always have to be cautious in the lawsuit society that we’re in, you know. ... I love the company, and I love the people I work with. We’re very close and we’re holding hands and walking through the fire. We intend to be successful."

Charney has never been charged or convicted for sexual harassment claims against him in any court of law. 

However, American Apparel previously settled cases with four models who claimed they had been harassed or sexually assaulted by Charney. The company paid a sum of $3.4 million to two models. The other two settlements were confidential. 

In 2015, after Charney had already left American Apparel, the company's board accused him of violating company policies prohibiting harassment and retaliation against former employees.

"The company discovered voluminous evidence of Mr. Charney’s sexual liaisons with employees and models," the company said in court papers.

Charney was also accused of using ethnic slurs against workers and keeping videos on a company server of himself engaging in sex acts with models and employees.

In response, Charney filed a defamation lawsuit against the company that was later dismissed. 

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American Apparel's disgraced founder seems to be resurrecting his 'dead' brand under a new name

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Los Angeles Apparel

Dov Charney has started a new clothing company that's shockingly similar to American Apparel.

The brand, called Los Angeles Apparel, launched in late 2016 soon before American Apparel — the company that Charney founded — declared bankruptcy in October. 

According to Bloomberg's Matthew Townsend, the sense of deja vu goes beyond the similar name. Other shocking similarities include: 

  • The motto: Charney is reportedly considering the slogan, "Made in South Central." American Apparel’s is "Made in Downtown L.A."
  • The clothing: Los Angeles Apparel is upfront about the fact that its clothing is essentially identical to American Apparel's. "Below are original classic garments developed by Dov Charney over the last two decades,"the website reads."They are equivalent to the styles Charney has offered in the past, from a specification, color and textile perspective." 

Los Angeles Apparel

  • The models: While Los Angeles Apparel hasn't launched any marketing campaigns like American Apparel's racy ads quite yet, models on the website share the brand's approach to "natural beauty," showcasing minimal makeup and thick brows.  
  • The customers: Los Angeles Apparel is starting as a wholesale business. Apparel companies, such as Cincinnati-based TSC Apparel, have simply swapped their American Apparel orders for Los Angeles Apparel after the brand filed for bankruptcy. 
  • The workers: American Apparel's bankruptcy meant that Charney could hire laid-off workers for his new company. 
  • The supplies: According to Bloomberg, Charney bought fabric, computers, sewing machines, and even light bulbs from American Apparel in the bankruptcy sale. 
  • The warehouse: American Apparel previously used Los Angeles Apparel's production center and warehouse space — where Charney now also lives. "I will not leave. This is my bed. This is my room. This is where I sleep," he told Bloomberg. 

Charney was pushed out at American Apparel in 2014. He had been sued for harassment by employees several times, in suits that were settled or thrown out of court. 

Canadian apparel maker Gildan bought the American Apparel brand for $88 million in a bankruptcy auction January, integrating the brand into the company's wholesale business. 

"The company is dead,"Charney told The Atlantic of the deal. "They’re just tossing around a brand. It's like Polaroid or Sharper Image. The spirit of American Apparel is dead." 

SEE ALSO: 13 retailers that are dying and taking the fashion industry with them

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People are finding expensive designer shirts for just $4 at K-Mart stores all over the country

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thumb 2 (1)

The INSIDER Summary:

  • Earlier this week, a Reddit user found Supreme T-shirts at K-Mart for only $4.
  • Now, they're popping up in K-Mart stores all over the US.
  • However, the Supreme tag is being removed from the T-shirts before being sold.
  • The shirts were manufactured by American Apparel before the brand folded, and Reddit users speculate that K-Mart acquired them instead of Supreme.


Shopping at big department stores can be hit or miss, but on August 1 Reddit user CokeSlurpees lucked out, according to i-D.

The Redditor found $4 Supreme T-shirts at K-Mart.

This is a big deal because Supreme, a skate brand with a cult-like following, is notoriously expensive (around $20 per tee) and hard to find outside of its perpetually packed stores.

Now, the T-shirts are popping up in K-Mart stores all over the country, but with the Supreme tags cut off.

It turns out that these $4 shirts are American Apparel T-shirts with Supreme labels — apparently, American Apparel was one of Supreme's key suppliers.

This is particularly interesting because, as i-D reported, the skate apparel brand had not previously revealed who supplied its blank shirts.

While fans have long speculated that American Apparel was a supplier, this incident confirms those suspicions. 

As to how those shirts ended up at K-Mart, according to Refinery29, CokeSlurpees shared their entirely plausible theory on Reddit.

"American Apparel announced they were going out of business earlier this year," they wrote. "For some reason these shirts didn't get shipped to Supreme. They were supposed to have their tags cut off (like the other ones), and were thrown in a lot with other shirts and liquidated to K-Mart."

Whatever the truth is, you should run, not walk, to your nearest K-Mart to see whether you can find a stash.

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American Apparel has relaunched online – and it looks exactly the same

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American ApparelAmerican Apparel is back. 

The US brand, which declared bankruptcy in October 2016 and was bought by Canadian apparel maker Gildan for $88 million in January, relaunched online Monday.

Scrolling through the website, there's a strong feeling of deja vu; it almost looks as if nothing has changed since the days of its founder, Dov Charney.

You'll find a whole line of plain colored T-shirts and basics, brightly colored leggings, and its signature bodysuits. You're even invited to "Shop the Archives," a collection based on pieces taken from photo shoots dating back to 2007, Racked reported.

Gildan, who purchased the intellectual rights to the company, has not only kept on a group of designers and marketing people from the former American Apparel teams but it's also acquired millions of dollars worth of old inventory and fabric. 

But there's one big difference, the "Made in the USA" stamp, that American Apparel was once famous for, has all but disappeared from the new clothing, as the majority of these products are now manufactured in factories in Honduras and Nicaragua. 

Conscious of alienating loyal fans, Gildan has also launched a smaller eight piece collection of "Made in the USA" styles, which are almost identical to other pieces on the website, only more expensive. Customers can expect to pay $48 for the USA-made hoodie for example, versus $38 for a similar version made elsewhere.

American ApparelAmerican Apparel now has a new force to reckon with: former founder Dov Charney has launched another venture, called "Los Angeles Apparel," which is shockingly similar to his former brand. On the website, it states that this new collection is created by workers who have been collaborating with Dov Charney for the past two decades.

A spokesperson for Gildan told Business Insider that this isn't currently a concern.

"The fashion basics business is crowded already with lots of brands. The only time we would ever become concerned is if something he was doing was seen to be infringing on any of our intellectual our property rights or purposely misleading consumers into believing the apparel he is selling is American Apparel," the spokesperson said.

SEE ALSO: American Apparel's disgraced founder seems to be resurrecting his 'dead' brand under a new name

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American Apparel is now back online — here are the best things to buy

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american apparel store

The INSIDER Summary:

  • American Apparel has relaunched its website.
  • The company closed all of its stores, filed for bankruptcy twice, and was bought by Gildan, a Canadian apparel maker.
  • Shoppers can now buy items that look just like the classic pieces that the brand sold in the past
  • A cropped sweatshirt, midi dress, and spandex bodysuit are among the best items to buy.


It's been a rough few years for American Apparel.

After the brand filed for bankruptcy twice, was purchased by Canadian clothing maker Gildan, and closed all of its brick and mortar stores, we thought we'd seen the last of American Apparel.

Luckily, as Refinery29 pointed out, the brand best known for its retro styles and comfy basics is back — but only online via its newly relaunched website.

On August 4, Racked reported that Gildan promised that the brand would be back "in the next few weeks," so American Apparel's digital-only relaunch is certainly a surprise.

The relaunch is especially exciting as the brand is selling pieces that look almost exactly like its classic fan favorites at affordable prices.

Keep scrolling for nine highlights from American Apparel's newly updated website, including a cropped sweatshirt, midi dress, and spandex bodysuit.

Cotton Spandex Off-Shoulder Long Sleeve Bodysuit, $32

off the shoulder bodysuit

High-Waist Jean, $72

mom jeans

Ponte Mid-Length Pencil Skirt, $38

midi skirt

Easy Jean, $68

dark wash easy jeans

Ryder Midi Dress, $38

midi dress

Cotton Spandex Jersey High-Waist Leggings,$28

leggings

Tri-Blend Pullover Crop Hoodie, $28

drawstring hoodie

 Cotton Canvas School Bag, $48

denim backpack

Organic Fine Jersey Crewneck T-Shirt, $22

white t shirt

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A store is selling $60 designer shirts with the Kmart logo on them

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k mart supreme

The INSIDER Summary:



At the beginning of August, Kmart stores across the US sold Supreme shirts for just $4. The Supreme shirts are back — but this time they have an ironic twist.

The online store Rare VNTG has taken blank T-shirts from the designer and printed the word "Kmart" on them in the style of Supreme's signature logo, Complex reports. 

The shirts cost a lot more than $4, though; Rare VNTG's version, the "Bootleg Box Logo T Shirt," are being sold for $60.

Here's what it looks like:

k mart supremeRare VNTG is also selling a red version of the shirt.

kmart red

Complex noted that the Supreme-style shirts are a big hit with customers. The "Bootleg Box Logo T Shirt" is already sold out in white. Luckily, shoppers can still snag the red version of the shirt in sizes medium and extra large.

Supreme fans initially went crazy over the $4 shirts, which were manufactured by American Apparel.

In an attempt to stop the hysteria, Kmart employees cut the Supreme tags off of the shirts. 

But that didn't work — and shoppers flocked to Kmart to pick up the discounted shirts. Now, according to Complex, those original Supreme shirts are being resold on eBay way above their original $4 cost. Whatever the case is, people just can't get enough of this Supreme x Kmart collaboration.

If you're interested in the new Kmart logo shirt, you should add it to your shopping cart sooner rather than later — or it just might sell out. If you're willing to pay the expensive price, you can order one here.

SEE ALSO: Walmart's most surprising top-selling items in every state

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American Apparel's founder says that 'sleeping with people you work with is unavoidable'

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Dov Charney

Dov Charney has a new clothing company— and he says he doesn't regret any of the behavior that led to his being forced out at American Apparel, a company he founded. 

Charney started Los Angeles Apparel in late 2016, two years after he was forced out of American Apparel by his own board and other investors in the company. His removal came after several employees lodged sexual harassment allegations against him. 

However, in an interview with The Guardian published Sunday, Charney said that he doesn't regret any of his relationships with employees, which contributed to his being forced out of the company. 

"Sleeping with people you work with is UNAVOIDABLE!" he told reporter Hadley Freeman. 

"Take yourself," Charney told Freeman. "You're well-spoken, well-educated, you decide to work here. And we develop a romantic interest in each other. We could say, 'OK, we're attracted to each other, but it's better we just work together.' OK, we could try that. And that may work. But if the attraction is so intense, eventually we're gonna give up!" 

Meet Katya. She worked for my previous company and is now a creative contributor for the new company. She is shown here wearing some of our new prototypes which will to be available to the public in the next few months via our online store. In addition to helping us build the new company, Katya is a professional synchronized swimmer and aspiring actress. Also shown is my son, Manou. Shot July 23, 2017. Flexibility, creativity and passion. That's Los Angeles. BTW if you want to model for us send me a message of interest or email me at dovcharneypersonal@gmail.com and use the subject "model". #dovcharney #southcentral #losangeles #model #gymnastics #bodysuits #impressionsmagazine #tscapparel

A post shared by Dov Charney (@dovcharney_losangeles) on Aug 2, 2017 at 11:29pm PDT on

In the interview, Charney said that he abhorred all forms of sexual harassment and he claimed the board used allegations as an excuse to force him out of the company. 

Charney has never been found guilty of sexual harassment. He has consistently denied allegations, with some claims settled by American Apparel's insurance company against Charney's will and others settled only on allegations that did not relate to sexual harassment.

Charney also argued that Americans' hysteria about sex distracts people from real issues, like immigration and the environment. He used the "Access Hollywood" tapes in which Donald Trump said the phrase "grab them by the p----" as an example. 

"That stuff he said to Billy Bush [about grabbing women by the vagina] — who cares?" Charney told the Guardian. "If you recorded all the things I said about women in the past 10 days it would be no different."

As in a previous interview with Bloomberg's Matthew Townsend, Charney refused to discuss if he was engaged in sexual relationships with employees at Los Angeles Apparel, saying it was a "private" matter. 

American Apparel previously settled cases with four models who claimed they had been harassed or sexually assaulted by Charney. The company paid a sum of $3.4 million to two models, according to court papers filed by the company. The other settlements were confidential. 

In 2015, after Charney had already left American Apparel, the company's board accused him of violating company policies that prohibit harassment and retaliation against former employees.

"The company had wanted to sell the company underneath me and rehashed distorted allegations into the media so they could distract the company and successfully hijack control of the company," Charney told Business Insider earlier this year. 

He is in the process of suing former American Apparel officials over claims that they conspired to push him out of the company.

SEE ALSO: American Apparel's disgraced founder seems to be resurrecting his 'dead' brand under a new name

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Kim Kardashian says she wears fast fashion 'all the time' — and she probably shops at the same stores as you

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kim kardashian

  • Kim Kardashian West told INSIDER that she likes to mix high and low fashion "all the time."
  • The reality TV star said she wears Zara and H&M clothes and loves American Apparel for hoodies and tank tops in particular.
  • She said the most affordable thing in her wardrobe is "probably a tank top."

 

It's no secret that Kim Kardashian West loves to wear designer clothes. Yeezy, Gucci, and Tom Ford are among her favorite labels to wear at the moment, but she isn't opposed to combining designer wear with fast-fashion items.

During an interview with INSIDER to promote her new style app, ScreenShop, the "Keeping Up With the Kardashians" star said that she owns a lot more fast fashion than people might expect.

"I wear Zara, I wear H&M," Kardashian West told INSIDER. "I buy stuff online all the time."

The KKW Beauty founder doesn't seem to let the price of clothes faze her when it comes to putting together her outfits. "I mix and match, I wear things high, low, all the time," she said. "I don't really care as much — you know, I don't have to wear something that is super expensive."

Kardashian West has publicly vouched for H&M in the past. She even told her fans how to emulate her outfits with clothes from the store in 2015, when Balmain — where her friend, Olivier Rousteing, is creative director — partnered with the retailer.

When it comes to fast fashion these days, she seems to stick more to the basics. According to Kardashian West, the most affordable garment in her wardbrobe is "probably a tank top"— which gives us at least one thing we can say we have in common.

As well as H&M and Zara— other celebrities like Kate Middleton have also been known to shop at the latter — Kardashian West likes American Apparel in particular. "I love their hoodies and their tank tops," she said. "I do own probably way more than you would think."

Kim Kardashian

While you could very well be shopping at the same stores as Kardashian West, and possibly even wearing the same American Apparel tank top, a lot more goes into the reality TV star's style than you might expect. 

As well an in-house stylist, who she works with to put together all of her looks, Kardashian West wears a lot of clothes that are made specifically for her. "I think my day looks have been just everything from the Yeezy office, just making it for me — even like all my looks that I've been wearing out at night," she said. 

"I've been super chill and just been having everything made from the office and just wearing that," she continued. "It's a fun exercise to just figure out what works and what doesn't."

Although most of us can't exactly relate to having clothes made for us, knowing that Kardashian West shops at some of our go-to stores makes our next trip to H&M a little more glamorous.

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American Apparel has a new look created by women, but it's still risqué — here's why

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American Apparel

  • American Apparel has implemented an all-female executive team for the first time in the brand's history.
  • The new team is reworking the representation of women in its ads.
  • The ads are still provocative, but they aim to represent women in a more progressive way, according to Adweek.


American Apparel is back, and it's trying to shake off its controversial image. 

The US brand founded by its former CEO, Dov Charney, declared bankruptcy in October 2016 and was bought by Canadian apparel-maker Gildan for $88 million three months later.

Charney was pushed out of the business by his own board and other investors in 2015. His removal came after he was accused of failing to prevent an impersonation blog and financial misconduct. In the past, several employees had lodged sexual harassment allegations against him. 

American Apparel's ad campaigns were known for their images of nearly nude women in risqué positions. 

American Apparel

Gildan is now working to make over the brand's former reputation. One step it has taken is to implement an all-female executive team.

But, as you scroll through the brand's website, you'll still see many scantily dressed models.

"We don't believe in covering up," Sabina Weber, head of brand marketing at Gildan, told Adweek. "Women feel so conflicted about being sexual right now, but we're taking a position to still be sexy, unapologetically so, but from an empowered female perspective."

American ApparelWeber told Adweek that the new images depict women in a more progressive way, and male models are also now shot in similar poses. 

Baby It's Hot Inside -- shop link in bio. #AmericanApparel #Lookbook

A post shared by American Apparel (@americanapparelusa) on Dec 13, 2017 at 9:33am PST on

Disco is back!✨ Shop link in bio. #AmericanApparel

A post shared by American Apparel (@americanapparelusa) on Dec 15, 2017 at 9:19am PST on

According to Adweek, American Apparel models must be over 18. In previous years, the brand was accused of featuring prepubescent teens in its ad campaigns.

In November, a post on the brand's Instagram account called for models over 25, "gender and size irrelevant."

The new face of American Apparel launched online in August. The collection has a similar aesthetic to what was sold before: you'll find plain colored T-shirts and basics, brightly colored leggings, and its signature bodysuits.

Now, Gildan has a new force to reckon with: former founder Dov Charney has launched another venture, called "Los Angeles Apparel," that is shockingly similar to his former brand. On the website, it states that its collection is created by workers who have been collaborating with Dov Charney for the past two decades.

SEE ALSO: American Apparel has relaunched online – and it looks exactly the same

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American Apparel has a strategy that could save its business

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American Apparel

American Apparel is attempting a turnaround.

Delivering clothing through the app Postmates is a part of the equation, Cynthia Erland, the brand's senior vice president of marketing, told Adweek in an interview.

"Obviously e-commerce continues to grow, and in the retail world we all know it's really leading the pack. A key initiative on that front is that we're working on improving our mobile experience this year, creating faster payment and order fulfillment," Erland said. "We just launched this program with Postmates. It's a soft launch in New York City and San Francisco where [couriers] pick up the products in store and deliver them in four to five hours instead of four to five days. We're looking at creative ways to make the consumer experience much better."

American Apparel isn't the only California-based retailer to implement rapid delivery in New York City and San Francisco. Apparel startup Everlane has a service called "Everlane Now," through which New York and San Francisco-based shoppers can receive select goods in an hour.

But while a revamped delivery system could make the retailer seem more cutting edge, is that enough to get people to shop there? After all, American Apparel has not had a net annual profit since 2009, the Los Angeles Times reported in January.

Mondays... are better in crop tops. @materialgirlmagazine #AmericanApparel

A photo posted by American Apparel (@americanapparelusa) on Mar 14, 2016 at 3:32pm PDT on

American Apparel has a troubled recent history.

The retailer filed for Chapter 11 bankruptcy in October, though in January, it was announced that a US Bankruptcy Court judged had approved a plan to reorganize, the Los Angeles Times reported. This meant that former CEO Dov Charney lost his final chanceto take back his brand. He had presented a $300 million bidto buy back his business.

One reason the company initially faltered was that the company lost its suggestive edge. Though its overt promiscuity might had been subject to criticism, the company appeared to be without an identity when it scaled back on the sexiness.

"Big questions remain around both brand and product. On the former, it is still not clear what American Apparel is trying to change to. We know that the company is looking to be more ethical in its marketing, relying far less on the sexual overtones it has used in the past. However, as welcome as this may be, it does mean that a fresh viewpoint is needed in order to give the company a clear and cohesive brand image," Neil Saunders, CEO of consulting firm Conlumino, wrote in a note in October.

It appears that American Apparel's signature sexy edge is coming back, though.

"One thing a lot of people don't know with all of the Dov [Charney] noise is that all of the creatives are still here, the people who really built the brand. So we're totally keeping the DNA–the edgy, irreverent [tone]–but now it's time to kick it up a notch with proper strategy and financial funding," Erland said to Adweek.

"You know, marketing is fluid, everything evolves, and fashion has evolved over the past 10 years. It's definitely going to be gritty, real, independent and revolutionary, with young artists. It may be sexual; it may not. It will be how they freely express themselves," she said in the interview.

SEE ALSO: American Apparel made one mistake that led to its downfall

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