Started From the Bottom..but They’re Still There.

It’s been no secret that the leotard, hoodie, hipster selling brand American Apparel has been struggling for some years to stay floating. While the brand has over 231 stores worldwide, it is still struggling to keep its customers flowing. In 2011, the brand just missed declaring Chapter 11 bankruptcy.   American Apparel has stores in China, Britain, Mexico, France, Israel, Sweden, Italy, Belgium and Australia. Woof, that would be a lot to say out loud. In terms of domestic production, American Apparel has the largest clothing manufacturer in the United States. Fun fact from The New York Times. Dov Charney, the brands found, CEO and creative director believes the importance of making each store a unique experience and individual from the others.

To help sales, in 2011 the brand cut a deal with high-end department stores in Europe.  Obviously entering Galeries Lafayette was a clear choice. While the department store had been selling the brand for awhile, it has decided to expand distribution to a more suburban location with several more to follow. Charney believes this is a way for the company to “expand its business without spending a lot of capital.” He asked investors for an extra $2-$4 million dollars to get the ball rolling. I wonder how awkward that was.. considering their financial situation wasn’t so hot.
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In an online NYT article Charney states, “It’s been said that the European customer is very critical, and I would agree. It’s very true,” Charney says. “But there is something that they are responding to in us, and I sincerely believe it’s the lack of pretense in our brand.”

An article posted on confirms that for the third quarter in a row, American Apparel has lost money.  Charney choose not to comment.  I wonder if the brand will post their fourth quarter results?? I probably wouldn’t.

Taken from

Taken from


Alexandra Swies

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