A favourite brand among fashion girls all over the world and a go-to shopping destination for Kiwi girls visiting the US, it has sadly been announced that American Apparel will close all 110 of its stores in the US.
As the L.A. Times reports, American Apparel will close its LA headquarters and all of its remaining stores by the end of April, resulting in 3,400 job losses for staff who work in their American factories.
The failing brand was acquired by Gildan Activewear earlier this year, with the Canadian brand paying $88 million for American Apparel’s intellectual property and some of the remaining equipment that the company owned.
According to experts, Gildan is likely to take manufacturing overseas, discontinuing the made in America, sweatshop free policies that the brand has held since its inception in 1989.
“[Gildan does] have a plan, and that plan doesn’t involve U.S. manufacturing and certainly not Los Angeles manufacturing,” said Lloyd Greif, chief executive of investment banking firm Greif & Co.
American Apparel became popular for its offering of quality basics and caused controversy for its raunchy advertising campaigns.
A sad conclusion for one of our favourite US brands and their loyal factory staff.