Industry News Recap: American Apparel Files Bankruptcy

image via Popai.com

image via Popai.com

Charney was ousted from the company when his unethical behavior was released to the public, and news spread of his history with sexual harassment lawsuits and inappropriate interviews. Recently, with new CEO Paula Schneider in charge, American Apparel has been trying to change their image from one of sexual objectification of their models to an image where the company promotes positive social change. This can be seen in American Apparel’s promotion of “Legalize Gay” t-shirts and through their support of Instagram star Brendan Jordan who identifies as androgynous and is an avid fan of the company’s clothing.

image via InstinctMagazine.com

image via InstinctMagazine.com

by Sophie Dill

American Apparel has been selling USA made clothing and accessories for over 26 years, and now the brand well known for their basic and unique pieces could be out of business. American Apparel is currently facing a devastating lack of sales (they haven’t made a profit since 2009), and huge legal issues dealing with ex-CEO Dov Charney.

image via Los Angeles Times

image via Los Angeles Times

I tend to love most of what American Apparel produces, and I follow multiple Instagram accounts of theirs, but my biggest issue with the company would have to be their prices. On a college student budget, American Apparel can seem overpriced and out of reach no matter how much I may desire their adorable cropped tops/sweaters and trendy top/skirt combinations. This is where the problem lies, because American Apparel’s values as a company lie within producing in the U.S., which raises costs compared to other retailers who are able to outsource to cheaper production.

It is not easy to watch American Apparel struggle, because as a company they provide so many citizens with jobs and they produce trendy, basic items ready to be worn in anyone’s closet. On the other hand, it it easy for me to see as a college student with a tight budget, how the company may be missing out on a huge segment of potential buyers because of the higher price range. It seems as though American Apparel’s doors may not be closing anytime soon, but the company has huge problems to address in order to be successful in the future.