Remember the simple t-shirts and the colorful hoodies? American Apparel was a worldwide presence in the 2000s. A hipster fashion mainstay. Unlike most other retailers, American Apparel was ‘Made in the USA’ and proud of it. Then American Apparel had its stores shuttered, and the news was full of its bankruptcy. Now, many people find themselves wondering, particularly as they see their advertisements: ‘Is American Apparel still in business?’
Yes and no. American Apparel does exist. However, it is a completely different business and model. It is under new ownership and is a new company. This article will attempt to define how the brand has changed and what it means to you as a consumer. This will address the state of one of the most recognizable brands in retail history.
The Rise and Fall of an Icon
With a few exceptions, American Apparel was iconic in the ’70s and ’80s. However, it was their rapid expansion and success in the 90s and early 2000s that allowed them to dominate the market. Ethical manufacturing in Los Angeles, coupled with the absence of sweatshop labor, was a major selling point.
Yet, everything started to go wrong. First, the founder got embroiled in a scandal. Sales went down. Then the company started racking up debt. In 2015, and then again in 2016, the company had to file for bankruptcy. It looked like the end. The US stores closed, all 110 locations. Since the stores had just been redone, the new bright yellow signs were added before the shutdown. It looked like the end for the brand. Customers were left baffled.
American Apparel’s journey reflects classic business life cycle stages, from rapid growth and market dominance to decline, bankruptcy, and eventual restructuring.
A New Owner Steps In
In 2017, American Apparel was acquired by Gildan Activewear. It is a Canadian company. Gildan is a multinational clothing manufacturer. Gildan is renowned for manufacturing t-shirts for a variety of businesses. For roughly $88 million, Gildan Activewear acquired the intellectual property from American Apparel. This included the name, logo, and design.
Gildan did not acquire the retail locations. They also did not purchase the clothing factories in Los Angeles. This was an enormous transformation. In the past, American Apparel utilized a vertical integration model in which they manufactured, distributed, and retailed all in one.
Now, Gildan also owns American Apparel. However, it will not manufacture new clothing for them. They will, however, use the name to manufacture clothing overseas. This will save the American Apparel brand, but it will also completely change the company.
The Shift to Online Shopping
Try to find an American Apparel store in the mall, and there will not be one there. Is American Apparel still in business as a retail store? They have also made another change, and the brand can now be found only online. This is a smart decision for a business. Physical retail locations are costly to operate. Expenses related to rent and staffing are very costly.
Gildan aims to sell apparel for less money. You can purchase apparel on their webpage. You can also buy their items on wholesale sites. Many screen printers use their shirts. The website looks familiar. It has their trademark, uncluttered design. The models seem to fit the clothing well. It looks like the website is from the good old days. However, the entire shopping experience is digital.
This transition highlights how modern online business models help legacy brands survive by reducing costs and focusing on digital sales.
Where Are the Clothes Made Now?
The old Gildan brand had an identity. The slogan was “made in USA.” When Gildan purchased the old brand, they removed the slogan. The clothing manufacturing is mainly done in Gildan-owned factories in Honduras and Nicaragua.
Some fans are upset learning the clothing manufacturing is no longer American. The clothing label now reads “Made in Honduras.” Gildan maintains an ethical approach to clothing manufacturing because it owns the factories, doesn’t outsource, and treats its workers well.
There is a collection on their site that has some exceptions. Some products are “Made in USA.” If you want these products, it will cost you more, and you will have to search for them. The normal t-shirt you order is probably from Central America.
Quality Control in a New Era
With new owners comes new worries. What about a shirt, or other merch, from 2024? Is it really going to be the same? Gildan is a t-shirt industry leader and knows a thing or two about fabrics. Cotton is still soft, and the fit is still consistent, but from a fan perspective, the t-shirt is the same (or not?).
New changes might be noticeable. There is a chance the fabric is a little lighter. New factories certainly produce new results. New machines produce new results. Although fans may feel clothing is closer to the ‘vintage pieces,’ the clothing is generally high quality, especially when compared to other fast fashion brands.
The Nostalgia Factor
What 2020s styles do you think of in 2020? Currently, a popular 2020 style is the 2000s style, as more and more people discover the brand. One of the most targeted audiences of the brand is older millennials. They may miss their old college hoodies, so the brand plays into that with styles like the disco and tennis skirt.
This shows that is American Apparel still in business or not. It is not simply a matter of money. It is a matter of culture. The brand still has value because people have good memories associating it with a time in history. Even when it had no stores, the name meant something. Gildan knows this. They use vintage marketing in order to keep that feeling alive.
American Apparel’s Resale Market Presence
American Apparel is active in a different type of business: vintage resale appliquéd denim jackets, vintage embroidered denim jackets, and vintage embroidered denim jackets. Selling vintage American Apparel clothing can be very profitable. Licenses: eBay, Depop, Poshmark, and many more. These are iconic American Apparel clothing lines.
American Apparel’s vintage clothing tag that is v Made in America v. American Apparel has a reputation, and claim, for selling vintage clothes, but many brand-loyal customers and resale vintage clothing enthusiasts add a lot of value to their clothing to make it very profitable. American Apparel has a vintage American Apparel brand and a Made in USA clothing line. Its organizational reputation and legacy can add value to a newly manufactured brand.
Final Thoughts
American Apparel is still in business. It is now a global brand and manufacturing entity along with Gildan Activewear. American Apparel is not only a global brand but is also a digital global business entity. American Apparel is a global brand manufacturing entity that is a global digital business entity that no longer has a global street-level brand entity.
The ethos of the aesthetic endures. The same uncomplicated, joyful pieces can be purchased, including the hoodie you loved. The success story of the brand is no longer local to LA. It is a corporate, nostalgic name brand now. The business model has shifted, but for many, the enduring style is still enough, even if the model has changed.
Frequently Asked Questions
Q. Can American Apparel clothes still be purchased?
Items sold by American Apparel in the U.S. are now mostly manufactured in Central America. For an additional charge, American Apparel does have a line of clothing that is manufactured in the United States.
Q. American Apparel stores used to be everywhere. Why did they stop selling clothes?
American Apparel went through the bankruptcy process twice due to insufficient revenue and growing debt. This is how the company lost all of its retail stores.
Q. Is the quality of the clothes still the same?
The quality is good, though some longtime shoppers feel the newer clothes are made of a different material than the original vintage line, and they do have a good amount of consistency.
