American Apparel, Inc.
Type	Public (AMEX: APP)
Founded	Los Angeles, California
Headquarters	Los Angeles, California
Key people	Dov Charney, Founder & CEO
Industry	Garments manufacturer
Products	Clothing
Revenue	▲ US$284 million (2006)
Employees	6700 (2007)
Website	www.americanapparel.net

American Apparel (AMEX: APP) is the largest clothing manufacturer in the United States, and is noted for advocating and utilizing non-"sweatshop" labor policies, which the company has dubbed "sweatshop free."^[1] American Apparel is a vertically-integrated clothing manufacturer, wholesaler, and retailer that also performs its own design, advertising, and marketing. It is best-known for making basic cotton knitwear such as t-shirts and underwear, but in recent years has expanded to include tank tops, dresses, pants, denim and accessories for men, women, children, babies and dogs. Image File history File links American_Apparel-logo. ... General public redirects here. ... The American Stock Exchange (AMEX) is an American stock exchange situated in New York. ... Los Angeles and L.A. redirect here. ... This article is about the U.S. state. ... Los Angeles and L.A. redirect here. ... This article is about the U.S. state. ... Dov Charney (born January 31, 1969 in Montreal) is the CEO of the garment company American Apparel (AA), a vertically integrated clothing manufacturer, wholesaler, and retailer that makes all of its garments in a downtown Los Angeles factory, now the single largest clothing manufacturing plant in the United States. ... (See also List of types of clothing) Introduction Humans often wear articles of clothing (also known as dress, garments or attire) on the body (for the alternative, see nudity). ... Clothing protects the vulnerable nude human body from the extremes of weather, other features of our environment, and for safety reasons. ... For the tax agency in Ireland of the same name, see Revenue Commissioners. ... USD redirects here. ... This article is about work. ... A website (alternatively, Web site or web site) is a collection of Web pages, images, videos or other digital assets that is hosted on one or several Web server(s), usually accessible via the Internet, cell phone or a LAN. A Web page is a document, typically written in HTML... The American Stock Exchange (AMEX) is an American stock exchange situated in New York. ... A sweatshop is a factory where workers make products in very poor working conditions. ... It has been suggested that Vertical expansion be merged into this article or section. ... T-Shirt A T-shirt (or tee shirt) is a shirt with short or long sleeves, a round neck, put on over the head, without pockets. ... A pair of mens briefs Undergarments, also called underwear or sometimes intimate clothing, are clothes worn next to the skin, usually under other clothes. ... Two runners wearing different styles of tank top. ... The term dress may refer to either clothing or attire in general a specific type of garment, discussed in the article on skirt and dress the dres subculture in Poland This is a disambiguation page — a navigational aid which lists pages that might otherwise share the same title. ... Pants are a type of clothing for the lower body. ... This article is about the material denim. ... Fashion accessories and theur jewelry counterpart referred to as costume jewelry are items that used as fashions complementary. ...

Production

Main factory and headquarters in Los Angeles

Manufacturing is based in an 800,000 square foot factory in downtown Los Angeles, California. By integrating all aspects of production and avoiding outsourcing, the company achieves a fast turn-around time from design concept to finished product.^[2] The company also operates its own fabric dye house, garment dye house, and knitting facility, all based in Los Angeles.^[3] The company is unusual in that it manufactures apparel in the United States, when most apparel production today takes place in Central America, the Caribbean, and in Asia. Image File history File links Size of this preview: 800 × 559 pixelsFull resolution (1286 × 898 pixel, file size: 346 KB, MIME type: image/jpeg) The headquarters and main factory of American Apparel in Los Angeles, California. ... Image File history File links Size of this preview: 800 × 559 pixelsFull resolution (1286 × 898 pixel, file size: 346 KB, MIME type: image/jpeg) The headquarters and main factory of American Apparel in Los Angeles, California. ... Los Angeles and L.A. redirect here. ... Outsourcing became part of the business lexicon during the 1980s and refers to the delegation of non-core operations from internal production to an external entity specializing in the management of that operation. ...

Trendsetting brand

American Apparel has earned praise for its provocative and sometimes controversial advertising campaign, which in a short period of time has helped cultivate a powerful and trendsetting brand. American Apparel has a long history of advertising in Vice Magazine.^[4] In 2005 the company was named "Marketer of the Year" at the first-ever "LA Fashion Awards" (timed to coincide with Los Angeles Fashion Week).^[5]. That year Advertising Age described the campaign as "hot" and praised it for avoiding celebrity.^[6]. Vice is a Canadian magazine, founded in Montreal by Suroosh Alvi, Shane Smith and Gavin McInnes. ... Advertising Age is a magazine, chronicling trends in advertisement. ...

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.^[7]

In January 2008 the Intelligence Group, a leading market research and trend consulting firm, listed American Apparel as their number two Top Trendsetting Brand in their Cassandra Report, behind only Nike.^[8]. In February of the same year, Brand Keys named American Apparel as the number two retail apparel brand, behind Victoria’s Secret and tied with H&M. It was American Apparel’s first appearance on Brand Keys’ annual Loyalty Engagement Index.^[9].

Rapid retail expansion

Shopper at a Los Angeles store

As of 2007 the company is in the process of rapid retail growth, opening stores in the United States, Israel, Japan, Korea, Netherlands, Switzerland, Germany, Canada, France, Sweden, Mexico and the United Kingdom. Other planned countries to open stores in is Australia, Belgium, Italy, and Spain. ^[4] It was ranked 308th in Inc. Magazine's 2005 list of the 500 fastest growing companies in the country, with a 440% three-year growth and revenues in 2005 of over US$ 211 million.^[10] Los Angeles and L.A. redirect here. ... This article is about the Korean civilization. ... Inc. ... USD redirects here. ...

In late 2006 American Apparel announced a reverse merger with Endeavor Acquisition Corp., a special purpose acquisition company founded in July 2005.^[11][12] The merger closed in December 2007, at which point American Apparel became a publicly traded company.^[13] A reverse merger is a method by which a private company can become a publicly traded company without the expense and time requirements involved in an initial public offering (IPO). ... Special Purpose Acquisition Corporations (SPACs) are investment vehicles that allow public investors to invest in areas sought by private equity firms. ...

Progressive labor practices

As of 2007 the company employs more than 6,700 people and operates over 175 retail locations in 13 countries.^[14] The company pays its manufacturing employees an average of US$12 per hour^[1] Employees also receive benefits such as paid time off, healthcare, company-subsidized lunches, bus passes, free ESL classes, on-site masseurs, free bicycles and on-site bike mechanics, free parking, and proper lighting and ventilation.^[15]. Management style promotes accessibility of upper executives, including the CEO, to all employees.^[2] USD redirects here. ... Health care or healthcare is one of the worlds largest and fastest growing professions. ... Lunch is a meal that is taken at noon or in the early afternoon. ... This article is about the present transit agency. ... It has been suggested that Teaching English as a Second Language be merged into this article or section. ... Massage in Tarifa, Spain. ... This mountain bicycle features oversized tires, a sturdy frame, front shock absorbers, and handlebars oriented perpendicular to the bikes axis Bicycle may also refer to Bicycle Playing Cards. ... Not to be confused with lightning. ... Return inlet (left)Supply outlet (right). ...

Allegations of union busting in 2003

In 2003, UNITE launched a union drive at the factory.^[16][17]The drive came a week after Levi's, which had been UNITE-unionized, announced it was closing its last plants in North America in September 2003.^[18]The union claimed that American Apparel interfered with the drive. American Apparel denied the claims. The company was reported to the National Labor Relations Board for violations of Federal labor laws, and a no fault settlement was eventually reached with the NLRB.^[17][19]American Apparel posted in their production facility a document agreeing not to conduct any anti-union activities.^[17]

Unconventional corporate culture

The company has been criticized for sexually charged advertising and unconventional corporate culture.^[20] In 2005, four female employees filed sexual harassment lawsuits against American Apparel. ^[21] Three of the four employee lawsuits were either dropped or settled, with the fourth still pending.^[22]. American Apparel has also been accused of focusing on personal style and outward appearance in its hiring practices for retail positions.^[23] Sexual harassment is harassment or unwelcome attention of a sexual nature. ...

Support for immigration reform

As early as 2001, American Apparel has been a vocal advocate for reform of U.S. immigration laws. On May 1, 2002 American Apparel shut down its factory to allow the company's workers, many of whom are immigrants, to participate in a pro-immigration rally in downtown Los Angeles. Dov Charney, a Canadian immigrant, also marched alongside the workers.^[24] In addition to participating in this and a variety of subsequent immigration protests, the company has run a series of "Legalize LA" ads and billboards.^[25] This notable campaign, calling for immigration-reform, attracted a fair amount of media attention and was chronicled in The New York Times in January 2008.^[26] Charney has likened his company's position to the decision of Levi Strauss to desegregate their factories during the civil rights movement, saying "Why did Levi's do it? Probably because it was the right thing to do at the time. And they became known as a company that represented what America was all about. What Levi's was to San Francisco, we aspire to be to Los Angeles."^[27] The New York Times is a daily newspaper published in New York City and distributed internationally. ...

Environmental policies

The company promotes environmentally friendly practices.^[28] As of 2007 the company planned to increase its use of organic cotton within the next four years from over 20% to 80%. The company also recycles its fabric scraps. ^[29] It installed a 146 kilowatt solar electric system on its factory roof, designed to reduce power costs by at least 20%.^[30] Environmentally friendly, also referred to as nature friendly, is a term used to refer to goods and services considered to inflict minimal harm on the environment. ... Organic cotton is cotton that is grown without insecticide or pesticide from plants which are not genetically modified. ... Solar power describes a number of methods of harnessing energy from the light of the sun. ...

References

1. ^ ^{a b} New York Post - T-Shirts, As Far As the Eye Can See - Maxine Shen - March 24, 2004
2. ^ ^{a b} Segment of Modern Marvels: Cotton. The History Channel via AmericanApparel.net. Retrieved on 2007-11-25.
3. ^ True colors: some dyeing operations thrive, others fail - Los Angeles Business Journal - October 10, 2005[1]
4. ^ ^{a b} Jamie Wolf (2006-04-23). And You Thought Abercrombie & Fitch Was Pushing It?. New York Times Magazine. Retrieved on 2007-11-25.
5. ^ Grace Cerrone - lasplash.com - LA Fashion Awards - 2005 [2]
6. ^ Simon Dumenco - AdAge - Media Guy Slips Into a Coma - August 29, 2005[3]
7. ^ Kevin Ransom (2007-04-20). Reign Of The Plain: Survey Finds Gen Ys Prefer Brand Simple. MediaPost.
8. ^ Cassandra Report. Intelligence Group (2008-01).
9. ^ Brand Keys Releases 11th Annual Ranking of Top Retail Brands (2008-02).
10. ^ Inc. No. 308:American Apparel. inc.com (2006-08-01). Retrieved on 2007-11-25.
11. ^ American Apparel's unusual flotation is typical of Dov Charney, its founder. The Economist via AmericanApparel.net (2007-01-04). Retrieved on 2007-11-25.
12. ^ Andrew Ross Sorkin and Michael Barbaro. "Provocative Retail Chain Is Acquired", New York Times, December 19, 2006. Retrieved on 2008-03-12. 
13. ^ American Stock Exchange Announces Closing of Endeavor Acquisition and American Apparel Merger[4]
14. ^ Fact courtesy of American Apparel site.
15. ^ Linda Baker (2004-02-11). Made in the U.S. of A.?. Salon.com. Retrieved on 2007-11-25.
16. ^ Apparel News - Influential in 2002 - December 2002
17. ^ ^{a b c} Ari Paul (2005-08-04). Wolf in Sheeps Clothing. In These Times. Retrieved on 2007-12-19.
18. ^ Commondreams.org - Levi's to close Last U.S. Plant - September 2003[http://www.commondreams.org/headlines03/0926-03.htm>
19. ^ Stephen Wishart. Behindthelabel.org (January 2005) The Truth Behind American Apparel: Sweatshop free or Union buster?
20. ^ Newsweek - Jennifer Ordoñez - June 26, 2006"California Hustlin'"
21. ^ Josh Dean. Inc. (September 2005). Dov Charney, Like It or Not.
22. ^ Los Angeles Times - Fashion Mogul in Spotlight - January 17, 2008[5]
23. ^ Jamie Huff (2006). "Sweatshop Free but Still Exploitative:Sexual Harassment at American Apparel" (pdf). Chrestomathy: Annual Review of Undergraduate Research, School of Humanities and Social Sciences, School of Languages, Cultures, and World Affairs, College of Charleston 5: 153-67.
24. ^ May 1,March for Workers Rights - 05_2002
25. ^ The May Day Marches - Claire Hoffman - The Los Angeles Times - 2006-05-02 "The iconoclastic chief executive of American Apparel Inc. not only gave 3,300 of his employees the day off, but he also supplied them with T-shirts emblazoned with a pro-immigration message," "By noon, Charney had left the factory and joined his workers and their families, who had arranged to march together on Broadway," "American Apparel, with about 130 stores around the world, has a history of supporting May Day marches: In past years, employees were given half the day off and bused to protests.
26. ^ Louise Story - The New York Times - January 18, 2008[6]
27. ^ Memo Pad: Doing the Right Thing Women's Wear Daily, 12/28/2007
28. ^ PSFK - Piers Fawkes - October 4, 2007 "Why Build Sustainability Into Your Business?".
29. ^ Josh Sims, "Organic Consumers Association" (July 6, 2006). Look Good, Save the Earth.
30. ^ RenewableEnergyaccess.com (January 27, 2006).Downtown L.A. Clothing Company Goes Solar

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External links

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American Apparel

• American Apparel Online
• Better Business Bureau
• SFGate Article
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