Founded in 1989, American Apparel built its reputation in being produced in downtown Los Angeles and prided itself on being “Made in the USA”—taking the world by storm with its classic sportwear, retro styles, and overtly sexual advertising that prided itself on being in your face. American Apparel became a magnet for lawsuits, including one from Woody Allen, who objected to unauthorized use of his image in a 2007 billboard campaign. There were also seven public sexual harassment lawsuits against Charney, all of which were thrown out of court, but didn’t help to polish the company’s tarnished reputation. Reports now claim that the company is now owned by a Canadian company that does manufacturing in Latin America.
According to Business of Fashion, Gildan’s success lies in its global production chain, which allows them to produce apparel overseas in order to compete with companies including Hanesbrands Inc. and Berkshire Hathaway Inc.’s Fruit of the Loom. The company, which employs 42,000 people worldwide, owns and operates production facilities.