Private company

American Apparel Inc.

Logo: American Apparel, Public domain, via Wikimedia Commons4

American apparel manufacturer

American Apparel Inc. is a Los Angeles-based clothing retailer founded by Canadian businessman Dov Charney in spring 1989. Previously known as a "Made in USA" vertically integrated company, following its bankruptcy and sale to Gildan, the company markets itself as "Ethically Made—Sweatshop Free," and most of its apparel is made in Honduras and Nicaragua. After its sale, Dov Charney started Los Angeles Apparel in 2016—utilizing many of the same methods as American Apparel.2 Wikipedia text CC BY-SA 4.0

Last updated Oct 21, 2026.

Overview

1989Founded1
  • Industryclothing industry, retail1
  • HeadquartersLos Angeles1
  • Websitewww.americanapparel.com
  • Legal formDelaware corporation1
  • LEI549300VSVCCRKIVD36763
  • StatusActive3
  • LEI statusLapsed (not renewed)3
  • Registered addressC/O National Corporate Research, Ltd., 19901 Dover, United States3
  • Registered withDivision of Corporations, Department of State, 40040383
AmericanApparelYorkdale
Photo: Raysonho @ Open Grid Scheduler / Grid Engine, CC0, via Wikimedia Commons6

American Apparel Inc. is a Los Angeles-based clothing retailer founded by Canadian businessman Dov Charney in spring 1989. Previously known as a "Made in USA" vertically integrated company, following its bankruptcy and sale to Gildan, the company markets itself as "Ethically Made—Sweatshop Free," and most of its apparel is made in Honduras and Nicaragua. After its sale, Dov Charney started Los Angeles Apparel in 2016—utilizing many of the same methods as American Apparel.2

Corporate structure

American Apparel Inc. sits at the top of its group. 1 entity, 1 country on record. Switch between the flow chart and the network, and select any entity to see its details.

  • American Apparel Inc. Dover, Delaware, United States
    • Viva Radio Owned · Brooklyn, United States

Built from parent and subsidiary links from GLEIF, the Global Legal Entity Identifier Foundation (CC0); subsidiaries, stakes and holdings from Wikidata (CC0). Each entity in the chart links to its source.

What it owns

What American Apparel Inc. reports owning in its annual reports to the SEC: buildings, land and equipment, real estate and locations, investments, intangible assets and inventory, at the end of its latest fiscal year and a year before.

Stakes and holdings (Wikidata)

  • Viva Radio

Things Wikidata records the company as owning, with the share when stated.1

The story

Founded by Dov Charney in 1989.1

American Apparel was founded in 1989 by Canadian Dov Charney. For some time, clothes were made in South Carolina.

In 1997, the company moved to Los Angeles. Charney sub-contracted sewing to Sam Lim's 50-worker shop under the Interstate 10 freeway in East LA. Months later, the two became partners. In 2000, American Apparel moved into the historic Alameda Square complex in downtown Los Angeles, where it continued to grow primarily as a wholesale business, selling blank T-shirts to screenprinters, uniform companies and fashion brands. Later, the company moved into the retail market.

In 2005, the company was ranked No. 308 in Inc.'s list of the fastest-growing U.S. companies in the United States, with a three-year growth of 440% and 2005 revenues of over US$211 million.

In late 2006, American Apparel went through a reverse merger and became listed on the American Stock Exchange.

It was also one of the few clothing companies exporting "Made in the USA" goods; in 2007, the company sold about $125 million (~$182 million in 2024) of domestically manufactured clothing outside of America.

In 2010, American Apparel's auditors, Deloitte & Touche, resigned after informing the company that its financial statements for 2009 may not have been reliable. The resignation led to investigations by U.S. Securities and Exchange Commission and the United States attorney's office for the Southern District of New York.

In April 2011, American Apparel confirmed that it had secured $14.9 million (~$20.4 million in 2024) by selling some 15.8 million shares of common stock at 90 cents a share to a group of Canadian investors led by Michael Serruya and Delavaco Capital. The investors also received warrants to buy as much as 27.4 million additional shares. In April 2013, American Apparel issued a private offering of $206 million (~$273 million in 2024) in senior secured notes. The proceeds were used to repay a long-standing, high-interest credit facility from Lion Capital and Crystal Financial.

American Apparel was criticized in October 2013 for a "culturally insensitive display" in one of its New York stores. The display used imagery associated with Traditional African religion and Afro-American religion. This sparked outrage among some practitioners of these various religions, that include Haitian Vodou, Louisiana Voodoo, West African Vodun, Cuban Santería, and others.

Read the full text

In June 2014, the company's board of directors ousted American Apparel founder, chairman and CEO, Dov Charney, after allegations of misconduct and inappropriate behaviour towards employees. As interim chief executive during the search for a permanent CEO, the company's CFO John Luttrell was appointed. As co-chairmen, the company appointed Allan Mayer and David Danziger. Charney, through his lawyers, claimed his ousting was illegal and demanded reinstatement. Soon after, Lion Capital, a key lender to American Apparel, demanded the repayment of a $10 million loan four years early. A failure to repay the loan would trigger a default on a $50 million credit line with Capital One Financial.

In December 2014, American Apparel replaced CEO Dov Charney with fashion executive Paula Schneider.

Bankruptcy

By September 2015, American Apparel struggled to avoid bankruptcy, as the company needed to repay a debt of $15.4 million (~$19.9 million in 2024) due the following month. It struggled to find funds and prepared to report lighter financial results in the coming weeks.

The clothes retailer warned investors in August 2015 that it would not have enough cash to "sustain operations for the next twelve months" which raised "substantial doubt that we may be able to continue as a going concern". The firm filed for Chapter 11 bankruptcy on October 5, 2015. In January 2016, the company rejected a $300 million (~$383 million in 2024) takeover bid from Hagan Capital Group and Silver Creek, two investment firms aligned with Dov Charney.

In January 2017, American Apparel was acquired for $88 million (~$110 million in 2024) by the Canadian sportswear manufacturer Gildan Activewear.

From Wikipedia’s article on American Apparel, shared under CC BY-SA 4.0.5

Leadership

Who has led American Apparel Inc., and when. Pick a name to see everywhere that person has worked.

Products and brands

  • clothing

Listed on Wikidata.1

American Apparel designs, creates and prints its own advertisements. The company is known for its provocative and controversial advertising campaigns, which is largely the inspiration of the company CEO Dov Charney. According to Ad Age, American Apparel's advertising "telegraphs the brand" from person to person. The sexually charged advertising has been criticized, but has also been lauded for honesty and lack of airbrushing.

According to CEO Dov Charney, the vision for the brand is that of a "heritage brand. It's like liberty, property, pursuit of happiness for every man worldwide. That's my America." In regards to the company's image overseas, advisor Harry Parnass stated that the brand is about aspiration and that they are "selling the American dream."

American Apparel images often display subjects with their blemishes, imperfections and asymmetrical features highlighted and attached with brief, personal descriptions. Many of the models in American Apparel's advertising are recruited by Charney and his colleagues on the street, or company stores; others are selected after sending their photos directly to the company website.

The company has also used pornographic actors and glamour models in some of its ads including Lauren Phoenix, Charlotte Stokely, Sasha Grey, Euguenia Diyordiychuk and Faye Reagan. Adult entertainment trade magazine Adult Video News cited the American Apparel website as "one of the finer softcore websites going". Some of the company's other ads, which feature nudity or sexual themes, have been banned by various advertising authorities. In 2009, an American Apparel ad which appeared in VICE Magazine was banned in the UK, because the image "could be seen to sexualise a model who appears to be a child". American Apparel complied with this ruling. American Apparel also came under fire for a 2014 ad for mini-skirts, which featured a model bending over so that her underwear was prominently exposed; the ad was subsequently banned and the company reprimanded for their "potential to normalise predatory sexual behaviour". In 2013, the company released an ad in which the model lay on a bed with her feet up in the air without wearing pants. The company also released an ad in which a model posed in a series of photos focused on her crotch, in which her face was not seen. The UK Advertising Standards Authority criticized the ad for being "voyeuristic" and "vulnerable".

Read the full text

For a time, Charney used a branding strategy that spotlighted his treatment of workers, promoting American Apparel's goods as "sweatshop free". In 2014, the company released a controversial ad with a topless model, and the words "Made in Bangladesh" across her chest, in an effort to draw attention to the company's fair labor practices. In 2008, the company took out a series of political ads featuring the corporate logo that called current immigration laws an "apartheid system".

In 2005, the company was named "Marketer of the Year" at the first LA Fashion Awards. Women's Wear Daily published a survey in April 2007 from Outlaw Consulting, a creative research firm tracking the habits of 21- to 27-year-olds, which ranked American Apparel as the 8th most trusted brand, ahead of such clothing brands as H&M and Levi's.

In 2007, Imp Kerr created a fake American Apparel ad campaign in New York. The stunt lasted almost a year, until it was revealed that the fake ads were actually Photoshop mockups. American Apparel ran a tribute ad on the back cover of Vice magazine showing a compilation of the fake ads.

In January 2008, the Intelligence Group, a trend and market research firm, listed American Apparel as their number two Top Trendsetting Brand, behind only Nike. In 2008, The Guardian named American Apparel "Label of the Year".

From 2009 until 2014, photographers such as Henrik Purienne and David Shama worked on a number of ad campaigns for American Apparel that defined the identity of the brand.

Lerappa

Lerappa ("Apparel" spelled backwards) is a virtual private island that was commissioned by American Apparel in Second Life to emulate the company's real-world stores. The store was designed by virtual content designer Aimee Weber and was completed and opened in Second Life on June 17 of 2006. The 6,000-square-foot (560 m2) two-story company store was modeled after American Apparel's Tokyo showroom, and included some of the controversial advertising campaigns on the walls around the store. The building was constructed in mostly glass and featured lighting that change when the virtual world reaches night time. Outside the store was a stage where live virtual bands can perform.

Official American Apparel clothing, along with planned new lines the company was test marketing, was purchased in virtual form for less than 266 Linden (approximately US$1) and included a discount code usable at the company's real-life online store. 20 of American Apparel's styles were offered initially, Customers could also purchase real clothing from the company website via the virtual store. Lerappa was intended as an advertising experiment more than a vehicle for electronic commerce. In its first ten days of operation it generated approximately as much revenue as a typical retail location's daily sales.

Second Life protesters (aka. Second Life Liberation Army) held a protest opposing the company's real world use of sexually suggestive imagery in advertising campaigns. In February 2007 the virtual location was attacked by "virtual terrorists" via "white balls" which purposely placed in the store to temporarily obstruct areas of the screen.

American Apparel pulled out of Second Life's virtual arena and closed virtual shop in the fourth quarter of 2007.

Woody Allen billboard and lawsuit

In 2007, American Apparel put up two billboards, one in New York and one in Los Angeles, featuring an image of Woody Allen's character dressed as a Rabbi from the movie Annie Hall and Yiddish text, for a period of one week. According to Charney, the billboards were a satire and allegory alluding to both the scene in the movie and the similar controversy experienced by both individuals. Allen strongly objected to this use of his image and sued the company for $10 million. Allen testified at a December 2008 deposition that he considered the company's advertising to be "sleazy" and "infantile".

Although the company said as early as May 2008 that the billboards were meant "strictly as social parody", there was much debate over whether American Apparel's lawyers would use Allen's personal life, namely his affair with Soon-Yi Previn as their defense at the trial. Charney claimed that these rumors were outright false and that his speech was protected by the First Amendment. In May 2009, the case was settled by American Apparel's insurance carrier for $5 million (~$7.08 million in 2024), with the insurance company paying the bulk of the settlement. The settlement was for half of Allen's initial demand. Dov Charney said that if it had been up to him, he would have continued the case and taken it to trial.

Legalize LA, Legalize Gay, and Pride

In addition to participating in a variety of immigration protests, the company launched an advertising and advocacy campaign called "Legalize LA". The campaign featured advertisements in national papers like The New York Times as well as billboards, T-shirts, bus ads and posters. The company also maintains a Legalize LA portion of their website that features news articles relating to immigration reform, the brand and information on the history of the issue.

After the passing of Prop 8 (which defines marriage in the state as one man and one woman) in California in November 2008, American Apparel launched the Legalize Gay campaign. It is similar to the Legalize LA campaign, and shirts with "Legalize Gay" and "Repeal Prop 8" printed on them in the same style as the shirts of Legalize LA are sold by the company.

In June 2012, American Apparel partnered with the Gay and Lesbian Alliance Against Defamation in releasing a new line of T-shirts to celebrate LGBT Pride Month. Fifteen percent of the net sales of the shirts were donated to GLAAD. Isis King modeled for this line, becoming American Apparel's first openly transgender model. In the summer of 2013, American Apparel announced their desire for more "transexy" models.

In 2013, American Apparel was named one of TheStreet.com's "8 Pro-Gay Companies".

Canada

In a November 2010 ad running in Canadian alternative weeklies, the company describes itself as "a majority-owned Canadian company, founded and operated by Dov Charney, a Montrealer". The ad goes on to say, "In the end, one of the important things that makes American Apparel special is its Canadian heritage."

In pop culture

In 2010, Kanye West released his album My Beautiful Dark Twisted Fantasy. On this album, the song "Gorgeous" (featuring Kid Cudi and Raekwon) contained the following lyrics: "I need more drinks and less lights, and that American Apparel girl in just tights."

The 2013 Capital Cities song "Farrah Fawcett Hair", features a verse in which André 3000 lists a number of things he appreciates, ending with "getting tucked in every night for a month by the American Apparel ad girls". This song became the source for a parody by Willam Belli, Courtney Act, and Alaska Thunderfuck 5000 titled "American Apparel Ad Girls".

In February 2014, the band 5 Seconds of Summer released their hit single "She Looks So Perfect", which included the following lyrics: "You look so perfect standing there

in my American Apparel underwear."

From Wikipedia’s article on American Apparel, shared under CC BY-SA 4.0.5

Subsidiaries and ownership

Also owns

  • Viva Radio

From Wikidata.1

Timeline

  1. 1989Founded Founded1