Check out this story in the LA Times;
http://www.latimes.com/business/la-fi-american-apparel-factory-20120603,0,363512,full.story
  • SeanSrnik

    Not surprised. The difficulty of domestic manufacturing just continues to grow for large companies. Despite what Charney is trying to prove, Made In America is no longer a smart business strategy.

    Sure, domestic manufacturing will project a positive image and provide a variety of decent benefits, but when it comes down to revenue vs. profit, production in America is generating a significant net loss for the company. There is no way they can survive in the long term with this model, and I think Charney finally realizes this.
  • Matt Borchert

    It may be a smart model for them to offer both a made in america premium shirt, along with a cheaper one made outside the us for a lower price point to snatch up the majority of what gets sold in the US.

    Although the name American Apparel doesn't really flow into a made in honduras tag.
  • Sushilove

    If that lower the price of their stuff, I aprove.
  • wotto

    burstin' the bubble.
  • Obscure

    i think it is a good idea if they drop the price, made in Bangladesh more like it... not much is made in honduras nowadays...
  • Vokesy

    Vietnamese apparel doesn't have the same ring to it....
  • The big one

    First they should try getting out of LA and relocating somewhere else like the south.
  • Matt Borchert

    The big one said:First they should try getting out of LA and relocating somewhere else like the south.

    You can find dirt cheap labor all over LA.
  • William Henry

    Matt Borchert said:
    The big one said:First they should try getting out of LA and relocating somewhere else like the south.

    You can find dirt cheap labor all over LA.

    What about operating costs though? Rent, taxes, etc.
  • ValorApparel

    *grabs laborers, shoves them in uhaul truck. Uproots company to the south.* ;)
  • saadhumayun

    thanks for the info .for best apparels online you have it easily online on got apparel...

    http://www.gotapparel.com/store-womens-red-tag-sale.aspx
  • labyrinth

    Matt Borchert said:It may be a smart model for them to offer both a made in america premium shirt, along with a cheaper one made outside the us for a lower price point to snatch up the majority of what gets sold in the US.

    Although the name American Apparel doesn't really flow into a made in honduras tag.

    This isn't a bad idea. From reading the article though, it seems like he's really trying to prove that it can work in America (for now) though. Aside from the high prices and difficulties of rent/taxes/wages it's not a bad concept to have an American company producing/manufacturing in America but I think another issue they didn't really touch on was how quickly they expanded and opened up retail stores everywhere. I think they might need someone else on the inside to help manage some of their decisions to help cut back on their losses... the numerous lawsuits probably don't help either haha.

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