American Apparel starts mass layoffs as company winds down operations
American Apparel was once a fashion industry trailblazer with its colorful basics, provocative marketing and commitment to U.S. manufacturing. But after years of financial strife and corporate intrigue, the company began laying off 2,400 workers in Southern California on Monday — kicking off its final chapter as the country's largest garment maker.
The layoffs come as the company prepares to close or sell its factories in downtown Los Angeles, Garden Grove and South Gate. Its 110 retail stores are also expected to close within a few months.
The brand and some manufacturing equipment were sold at an auction in Bankruptcy Court last week to Canadian clothing maker Gildan Activewear for $88 million. Gildan had initially expressed interest in buying some of the company’s manufacturing operations, but later decided not to take over its stores or U.S. factories.
That decision sealed the fate of American Apparel, which moved to L.A. in 1997. Over the years, its controversial and charismatic founder Dov Charney grabbed headlines for his behind-the-scenes antics, but also for his deep commitment to U.S. manufacturing and fair wages.
Read more: http://www.latimes.com/business/la-fi-american-apparel-layoffs-20170116-story.html
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