UNITED STATES OF AMERICAN APPAREL
In an over-populated world that’s equally oversaturated with fashion brands, I can’t help but reminiscence on the glory days of American Apparel, circa ’06-‘11. Despite the laundry-list of allegations, you can’t dispute that founder, Dov Charney, transformed the apparel landscape. So, if you’re an aspiring entrepreneur, I highly suggest a case study into what he did wrong, and right.
From raw, provocative advertising to activist campaigns that supported gay marriage and immigrant amnesty, American Apparel was a trailblazer. While image-centric brands such as Ed Hardy, Von Dutch, and Juicy Couture were rising in popularity, Charney impressively turned logo-less, everyday basics into a cultural phenomenon. And while his barely-legal models played a large role in the brand’s popularity, it was its unique and transparent manufacturing process and that brought the crowds and cemented brand loyalty.
Once something becomes commonplace, it’s easy to forget how significant it once was. Just as people may roll their eyes at a Rothko or Basquiat piece now, younger generations aren’t fully able to appreciate American Apparel’s loud commitment to transparent and domestic manufacturing. Modern brands like Everlane have established themselves on the trail that Charney blazed - one where formerly overlooked workers become the central focus behind each garment. Whether you innovate an idea from scratch, or simply lead it to street-level success, being first is all that matters. (It also didn’t hurt to showcase LA as the production hub).
Charney launched American Apparel in 1989, but it wasn’t until the early 2000s that it blew up, seemingly overnight. The brand opened its first brick and mortar location in Echo Park in 2003. And up until 2012, the brand dominated highschool and college wardrobes across the globe. The minimalist, Helvetica-laden ads with suggestive imagery were splattered around every major city, from billboards and bus benches to magazines. Charney’s ingenious business model and marketing capitalized on the younger generation’s inclination towards ethical choices. Sadly, these very strategies that garnered a cult-like following, ultimately led to the brand’s demise in 2014.
In 2005, just a year after American Apparel ranked among the 500 fastest growing companies with nearly $128 million in annual revenue, Charney was hit with numerous sexual harassment cases, and the brand would never recover. In 2009, continued allegations, mounting debt, and government investigations into worker status marred the company’s seemingly flawless trajectory; Charney was forced to lay off 1,600 workers - all immigrants without proper documentation. In 2014, the company ousted Charney as CEO, and the following year, American Apparel filed for Chapter 11 with nearly $400 million in debt. In just several short years, Charney became the Icarus of the fashion world.
Despite its troubled history, American Apparel embodies The American Dream. Charney, a Canadian immigrant, leveraged outsider perspective to capitalize on American culture, generating thousands of jobs through domestic production in an industry that exists predominately offshore. He hired undocumented immigrants who relied on his wages to support their families while equally supporting to the LGBTQ+ community. He set the benchmark for “ethically-made, sweatshop-free clothing,” on which contemporary brands continue to build their foundations. And in the end, he created a simple brand that won the hearts of the world. Just as one would associate Kurt Cobain with the grunge scene in the 90s, we all associate American Apparel with the mid-late 2000s.
Today, American Apparel is still puttering around, though it strays far from its origins. In an ironic bait and switch, Canadian wholesaler Gildan acquired the company in 2017 for $88 million. The factories are overseas and the company operates exclusively online. Conversely, Charney’s post-departure venture, Los Angeles Apparel, continues the original tradition of quality, US-made, “sweatshop free” garments.. albeit with less suggestive marketing. Many small business owners, Print on Demand platforms and burgeoning streetwear designers now source their blanks from LA Apparel in the hopes of garnering a fraction of Charney’s earlier successes.
If one can compartmentalize the nasty allegations, one can’t help but respect Charney’s drive, resilience and ability to adapt in such a make-it-or-break-it industry. But in the end, his journey underscores the importance of aligning ethical practices with ethical leadership. In other words, if you’re going to proclaim your brand as an ethical one.. the carpet better match the drapes.
For more NSFW American Apparel ads- click here. Just make sure your boss isn’t over your shoulder.. unless of course, your boss is Mr. Charney.
-SID