More than 500 people have lost their jobs as US-based clothing retailer American Apparel has started laying off its employees. The company announced in December last year that more than 3,500 workers would be axed as part of its second bankruptcy go-around in two years.
American Apparel, which makes all its clothes in the US has been going through a rough patch in recent years that saw Dov Charney, a staunch advocate for fair wages and immigration, the founder ousted, store closings and huge fire sales to clear out merchandise that were unsold.
The apparel retailer issued a Warn Act Notice a few months back in order to inform its employees that ‘depending on the buyer of the business, a sale could result in eventual shrinkage of some business areas’.
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American Apparel is an American clothing manufacturer, designer, distributor, marketer and retailer based in Los Angeles, California. Founded by Dov Charney in 1989, it is a vertically integrated company which is one of the largest apparel manufacturers in North America.
