American Apparel

In 1989, Canadian founder Dov Charney started American Apparel, initially as a wholesale t-shirt business. The company quickly became known for its commitment to being "Made in the USA," operating one of the largest garment factories in the country and paying its workers higher-than-average wages. This vertically integrated model, combined with provocative, un-retouched advertising, gave the brand a unique and controversial identity. In 2003, Charney opened the first retail store in Los Angeles, sparking a rapid expansion that saw hundreds of stores open worldwide. The company went public via a reverse merger in late 2006. However, the brand's trajectory shifted as it faced mounting debt from its aggressive expansion and numerous lawsuits alleging misconduct by Charney. In 2014, the board ousted its founder. This event triggered a period of instability, leading to the company filing for Chapter 11 bankruptcy in October 2015 and again in November 2016. In 2017, Canadian manufacturer Gildan Activewear acquired American Apparel's brand and some assets for approximately $88 million in a bankruptcy auction, but did not purchase the retail stores.