American Apparel
2076901
225010576
2008-07-11T13:13:41Z
Versageek
146418
Reverted 1 edit by [[Special:Contributions/58.181.100.130|58.181.100.130]].
{{Infobox_Company |
company_name = American Apparel, Inc.|
company_logo = [[Image:American Apparel-logo.png|center|Company logo]]|
company_type = [[Public]] ({{amex|APP}})|
foundation = [[Los Angeles, California|Los Angeles]], [[California]]|
location = [[Los Angeles, California|Los Angeles]], [[California]]|
key_people = [[Dov Charney]], President and CEO<br />Marty Bailey, President of Manufacturing<br />William T. Gochnauer, Interim CFO<br />Nicolle Gabbay, Head of Retail Operations<br /> Patricia Honda, Customer Service Manager<ref>{{cite web|publisher=American Apparel|url=http://americanapparel.net/presscenter/pressCompanyInfo.html|title=Company Information|accessdate=2008-03-18}}</ref>|
industry = [[Garments|Garments manufacturer]]|
products = [[Clothing]]|
revenue = [[United States dollar|US$]]387 million (net sales, 2007)<ref>{{cite news|publisher=Business Wire (American Apparel press release)|title=American Apparel Reports Fourth Quarter and Full Year 2007 Financial Results|date=March 17|accessdate=2008-03-18|url=http://biz.yahoo.com/bw/080317/20080317006439.html?.v=1}}</ref>|
num_employees = 6700 (2007)|
homepage = [http://www.americanapparel.net/ www.americanapparel.net]
}}
'''American Apparel''' ({{amex|APP}}) is the largest clothing manufacturer in the United States.<ref>{{cite video
| people = Dov Charney
| title = American Apparel - Don Charney Interview
| medium = [http://youtube.com/watch?v=hYqR8UIl8A4 YouTube]
| publisher = CBS News
| year2 = 2007 }}@3:50</ref> It is a [[vertical integration|vertically-integrated]] clothing manufacturer, wholesaler, and retailer that also performs its own design, advertising, and marketing. It is best-known for making basic cotton knitwear such as [[t-shirts]] and [[underwear]], but in recent years has expanded to include [[tank tops]], [[dresses]], [[pants]], [[denim]] and [[accessories]] for men, women, children, babies and dogs. The company is known for a number of [[Progressivism|progressive]] policies including promoting immigrant rights and labor policies the company dubs "[[sweatshop]] free."<ref name=nyp>New York Post - [http://www.americanapparel.net/presscenter/articles/20040324newyorkpost.html T-Shirts, As Far As the Eye Can See - Maxine Shen - March 24, 2004]</ref>
==Company formation and growth==
[[Image:Shopper American Apparel.jpg|thumb|left|160px|Shopper at a [[Los Angeles, California|Los Angeles]] store]]In 1997, company founder and CEO [[Dov Charney]], who had run several related clothing enterprises, transitioned his manufacturing to Los Angeles and began to sub-contract sewing with SamLim who, at the time, had a shop with 50 workers under the [[Interstate 10]] freeway in Los Angeles. Months later the two became partners.<ref>Apparel News -Angeleno Style - Alison A. Niedler - August 2000</ref> In 2000 American Apparel moved into its current factory in downtown Los Angeles. The company also operates a dye house and knitting facility located in Los Angeles.<ref name=thc>{{cite web |url=http://www.americanapparel.net/gallery/modernmarvels/qt.html |publisher=The History Channel via AmericanApparel.net |title=Segment of Modern Marvels: Cotton |accessdate=2007-11-25}}</ref>
After its success as a wholesale brand, the company moved into the retail market. The company was ranked 308th in [[Inc. Magazine]]'s 2005 list of the 500 fastest growing companies in the United States, with a 440% three-year growth and revenues in 2005 of over [[United States dollar|US$]] 211 million.<ref>{{cite web |url=http://www.inc.com/app/inc500/viewCompany.jsp?cmpId=2006308
|title=Inc. No. 308:American Apparel
|publisher=inc.com
|date=[[2006-08-01]]
|accessdate=2007-11-25}}</ref>
In late 2006 American Apparel announced a [[reverse merger]], in which Endeavor Acquisition Corp., a [[special purpose acquisition company]] founded in July 2005, bought the company for $360 million.<ref>{{cite web |url=http://www.americanapparel.net/presscenter/articles/20070104economist.html
|title=American Apparel's unusual flotation is typical of Dov Charney, its founder
|publisher=The Economist via AmericanApparel.net
|date=[[2007-01-04]]
|accessdate=2007-11-25}}</ref><ref>{{cite news
|publisher=New York Times
|accessdate=2008-03-12
|title=Provocative Retail Chain Is Acquired
|author=Andrew Ross Sorkin and Michael Barbaro
|date=2006-12-19
|url=http://www.nytimes.com/2006/12/19/business/19deal.html}}</ref> The merger closed in December 2007, at which point American Apparel became a publicly traded company.<ref> American Stock Exchange Announces Closing of Endeavor Acquisition and American Apparel Merger[http://www.amex.com/atamex/news/press/sn_APP_122407.htm]</ref> As a result, Charney became the President and [[Chief Executive Officer]] of the publicly traded company known as American Apparel, Inc. He remained the majority shareholder, and all employees of American Apparel were given 500 shares of stock in the new company.<ref name=EndeavorSEC>Endeavour Acquisitions Corp. [http://google.brand.edgar-online.com/EFX_dll/EDGARpro.dll?FetchFilingHTML1?SessionID=5nd4WdQuc6_MIAT&ID=5237183 SEC Proxy Statement Schedule 14A, June 5, 2007]</ref><ref>{{cite news
| last = Kang
| first = Stephanie
| title = American Apparel Seeks Growth Through An Unusual Deal
| publisher = The Wall Street Journal
| date =2006-12-19
| url = http://online.wsj.com/article/SB116648211605153768.html?mod=mm_media_marketing_hs_left
| accessdate = 2008-03-21}}</ref>
===Retail===
[[Image:Americanapparelstorefront.jpg|thumb|right|180px|Retail storefront]]
The company's expansion into retail was the fastest retail roll out in American history.<ref>{{cite video
| people = Dov Charney
| title = American Apparel - Don Charney Interview
| medium = [http://youtube.com/watch?v=hYqR8UIl8A4 YouTube]
| publisher = CBS News
| year2 = 2007 }}"fastest retail roll out in American history"</ref> In 2003 American Apparel opened company stores in Los Angeles, Montreal, and New York to nearly $80 million dollars in sales<ref>DNR - All the Way to the Blank - Lee Bailey - March 22, 2004</ref> As of 2007 the company has more than 185 stores worldwide and continues rapid retail growth, with new stores in the [[United States]], [[Israel]], [[Japan]], [[Korea]], [[Netherlands]], [[Switzerland]], [[Germany]], [[Canada]], [[France]], [[Sweden]], [[Mexico]] and the [[United Kingdom]]. Stores are planned or under development for [[Australia]], [[Belgium]], [[Italy]], [[Spain]], <ref name=push/>, [[China]]<ref name=china/>, and [[Hawaii]].<ref name=hawaii>{{cite news
| last = Wu
| first = Nina
| title = American Apparel opening store in Waikiki
| publisher = Star Bulletin
| date =
| url = http://starbulletin.com/2008/01/05/business/story04.html
| accessdate = 2008-04-01}}</ref>
American Apparel retail stores are marketed and designed individually rather than [[homogeneous]]ly.<ref name=retail>{{cite news
| last = Hirschfeld
| first = Bob
| title = American Apparel Rides Marketing, Site-Selection to Success
| publisher = Retail Traffic Mag
| date =2006-12-19
| url = http://retailtrafficmag.com/mag/retail_american_dream/
| accessdate = }}</ref> Store designs are sparse and typically cost between $100,000 and $400,000 to develop.<ref name=retail/> The company tends to reject midtown, high rent locations and generally avoids in-mall stores.<ref name=retail/> The stores are often hubs for [[urban renewal]] since the company looks for low-rent but high traffic locations like [[Houston]], [[Little Tokyo]], [[New Orleans]] and many college towns.<ref name=retail/> When scouting for locations, it considers urban areas that can be revitalized.<ref name=seattle/> After opening on Southwest Stark Street in [[Portland, Oregon|Portland]], [[Oregon]] American Apparel was joined by a [[vintage clothing]] store, [[sushi]] restaurant, shoe shop and modern-styled hotel.<ref name=seattle/> In some cases, the company sublets parts of retail locations to other businesses of the same demographic, bringing additional retailers to previously unoccupied space.<ref name=seattle>{{cite news
| last = Eskenazi
| first = Stuart
| title = Hot Retailer...
| publisher = The Seattle Times
| date =2005-10-22
| url = www.portlandtenspeed.com/pdfs/The%20Seattle%20Times.pdf
| accessdate = 2008-04-28}} "In a few instances..."</ref> The bulk of American Apparel retail venues are in [[New York]] and [[California]].<ref name=retail/>
AmericanApparelStore.com is the company's [[e-commerce]] sales hub.<ref>[http://www.americanapparelstore.com www.americanapparelstore.com</ref> It carries an online inventory of roughly 250,000 [[Stock-keeping unit|SKUs]] and receives 1.5 million visitors per month.<ref name=iretailer>{{cite news
| last =
| first =
| title = AmericanApparel.net dresses for more success
| publisher = Internet Retailer
| date =2008-05-14
| url = http://www.internetretailer.com/dailyNews.asp?id=26392
| accessdate = 2008-05-28}}</ref> Online sales grew from $13.3 million in 2006 to $29.3 million in 2007.<ref name=iretailer/> The company site runs on the [[Yahoo!#Commerce|Yahoo Stores]] platform and is included in the Internet Retailer 500 Index.<ref name=iretailer/><ref>[http://www.internetretailer.com/top500/] Internet Retailer Top 500 Guide] 2008.</ref>
In late 2007, American Apparel opened a retail location for [[vintage clothing]] called California Vintage in [[Echo Park]], a district of [[Los Angeles]].<ref>{{cite web|publisher=Fabsugarl|url=http://fabsugar.com/837918|title=On Our Radar: American Apparel Does Vintage|accessdate=2008-03-28}}</ref> In 2008, the company was named "Retailer of the Year", following [[Calvin Klein]] and [[Oscar de la Renta]].<ref>{{cite news
| last =
| first =
| title = Dov Charney of American Apparel Named Retailer of the Year
| publisher = PR News Wire
| date =2008-05-12
| url = http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/05-12-2008/0004811796&EDATE=
| accessdate = 2008-05-15}}</ref><ref>[http://fashionista.com/2008/05/dov_charney_was_just_named.php Fashionista: Dov Charney, Winner] "Dov Charney was just named Retailer of the Year for his work as the Creative Director and entrepreneur behind American Apparel. The award's previously gone to Calvin Klein and Oscar de la Renta.</ref>
==Production==
[[Image:Americanapparelheadquarters.jpg|thumb|right|American Apparel's headquarters and factory in Los Angeles]]
Whereas most other companies selling clothing in the United States base production elsewhere, American Apparel bases its manufacturing in an 800,000 square foot factory in downtown [[Los Angeles, California]].The company also operates its own fabric dye house, garment dye house, and knitting facility, all based in Los Angeles.<ref>True colors: some dyeing operations thrive, others fail - ''[[Los Angeles Business Journal]]'' - October 10, 2005[http://findarticles.com/p/articles/mi_m5072/is_41_27/ai_n15760082]</ref> American Apparel has decided not to outsource its labor, paying its factory workers an average of $12 dollars an hour.<ref name=nyp/> Garment workers for similar American companies in China, earn approximately 40 cents per hour.<ref>{{cite web
|url=http://www.manufacturingnews.com/news/06/0502/art1.html
|title=Good Luck Competing Against Chinese Labor Costs Mfg. Job Growth In China Is Headed Up, Not Down; 109 Million Mfg. Workers In China Dwarfs Number In U.S.
|publisher=Manufacturing and Technology News
|date=[[2006-05-02]]
|accessdate=2008-04-28}}</ref>
The company uses "team manufacturing" which pools the strongest workers towards priority orders.<ref name=pitt>{{cite news
| last = Falsh
| first = Derek
| title = Keep Your Fashion in Great Shape
| publisher = The Pitt News
| date =2007-02-01
| url = http://media.www.pittnews.com/media/storage/paper879/news/2007/02/01/AE/Keep-Your.Fashion.In.Great.Shape-2689351.shtml
| accessdate = 2008-04-28}} "His team manufacturing..."</ref> After its implementation, garment production tripled and required a less than 20% staff increases.<ref name=pitt/> The factory claims to have the capacity to produce 1 million shirts per week.<ref>[http://sec.edgar-online.com/2008/01/16/0000890163-08-000020/Section7.asp AMERICAN APPAREL, INC - APP Current report filing (8-K)] "Capacity to produce over 1 million T-shirts per week with significant potential to expand."</ref><ref>{{cite video
| people = Dov Charney
| title = American Apparel - Don Charney Interview
| medium = [http://youtube.com/watch?v=hYqR8UIl8A4 YouTube]
| publisher = CBS News
| year2 = 2007 }}@3:28</ref> According to the [[New York Times]] it is the largest single garment factory in the United States.<ref name=push/>
===Vertical Integration===
American Apparel is a [[vertical integration|vertically-integrated]] company.<ref>{{cite news
| last = Greenberg
| first = David
| title = Sew what? American Apparel founder Dov Charney wants to de-emphasize the fact he doesn't use sweatshop labor; he's just trying to sell a better T-shirt - People
| publisher = Los Angeles Business Journal
| date =2004-05-31
| url = http://findarticles.com/p/articles/mi_m5072/is_22_26/ai_118184828
| accessdate = 2008-03-26}}</ref> The integration extends to 185 retail storefronts, all of which are owned by the company.<ref>{{cite video
| people = Dov Charney
| title = Charlie Rose
| medium = [http://video.google.com/videoplay?docid=-8906053411802681740 YouTube]
| publisher = PBS
| year2 = 2006 }}</ref> By integrating all aspects of production and avoiding [[outsourcing]], the company achieves a fast turn-around time from design concept to finished product.<ref name=thc>{{cite web
|url=http://www.americanapparel.net/gallery/modernmarvels/qt.html
|publisher=The History Channel via AmericanApparel.net
|title=Segment of Modern Marvels: Cotton
|accessdate=2007-11-25}}</ref> On ''[[Charlie Rose (talk show)|Charlie Rose]]'', founder [[Dov Charney]] discussed the process of developing new merchandise in their unique retail system, saying that it took just a "couple of weeks" for a bathing suit to go from idea to the retail floor. He claimed that a garment could be designed on Monday and be sold in London the following week.<ref>{{cite video
| people = Dov Charney
| title = Charlie Rose
| medium = [http://video.google.com/videoplay?docid=-8906053411802681740 YouTube]
| publisher = PBS
| year2 = 2006 }} 32:40 </ref><ref>{{cite news
| last = Joellen
| first = Perry
| title = Made in American: Some Consumers- and firms - prefer homemade goods
| publisher = US News and World Report
| date =2004-05-17
| url =
| accessdate = 2008-03-26}} "I can cut on Monday, sew Tuesday through Thursday, and ship on Friday."</ref>
== Branding and advertising ==
American Apparel is known for its provocative and controversial advertising campaigns, which is largely the inspiration of the company CEO [[Dov Charney]]. For a time, Charney promoted a branding strategy that spotlighted his treatment of workers as a selling point for the company's merchandise, promoting American Apparel's goods as "sweatshop free." In 2008, the company took out a series of political ads featuring the corporate logo that called current immigration laws an "apartheid system."<ref>{{cite news
| last = Story
| first = Louise
| title = Politics Wrapped in a Clothing Ad
| publisher = ABC New
| date =2008-01-18
| url = http://www.americanapparel.net/presscenter/articles/20080118nytimes.html
| accessdate = 2008-03-25}}</ref>
The company's advertising is also known for its sexuality. Many of the models are recruited by Charney and his colleagues on the street, or company stores; others are selected after sending their photos directly to the company website.<ref name=push>{{cite web |url=http://www.nytimes.com/2006/04/23/magazine/23apparel.html
|title=And You Thought Abercrombie & Fitch Was Pushing It?
|publisher=New York Times Magazine
|author=Jamie Wolf
|date=[[2006-04-23]]
|accessdate=2007-11-25}}</ref>
In 2005 the company was named "Marketer of the Year" at the first-ever [[Los Angeles Fashion Week|LA Fashion Awards]].<ref>Grace Cerrone - lasplash.com - LA Fashion Awards - 2005 [http://www.lasplash.com/publish/cat_index_Style_and_Fashion/LA_Fashion_Awards_2005.php]</ref> [[Womens Wear Daily|Women's Wear Daily]] published a survey in April 2007 from Outlaw Consulting, a creative research firm tracking the habits of 21-to 27-year olds, which ranked American Apparel as the 8th most trusted brand, ahead of such clothing brands as [[H&M]] and [[Levi's]].<ref>{{cite web |url= http://publications.mediapost.com/index.cfm?fuseaction=Articles.san&s=59027&Nid=29596&p=281205 |title=Reign Of The Plain: Survey Finds Gen Ys Prefer Brand Simple |publisher=MediaPost |author=Kevin Ransom |date=[[2007-04-20]]}}</ref> In January 2008 the Intelligence Group, a trend and market research firm, listed American Apparel as their number two Top Trendsetting Brand, behind only [[Nike, Inc.|Nike]].<ref>{{cite web
|url=http://www.intelg.com/CassandraReport_sample.pdf
|title=Cassandra Report
|publisher=Intelligence Group
|date=[[2008-01]]}}</ref>.
On [[March 31, 2008]], [[Woody Allen]] announced that he was suing American Apparel for $10 million in damages for featuring a still from the movie [[Annie Hall]] in a company advertisement.<ref name=allen>{{cite news
| last = Harmon
| first = Andrew
| title = American Apparel Defends Woody Allen Billboard
| publisher = DNR
| date =2008-04-02
| url = http://www.dnrnews.com/site/article.php?id=1649
| accessdate = 2008-04-21}}</ref> American Apparel claimed that the two billboards, one in New York and one in Los Angeles for a week in May 2007, were meant "strictly as [[parody|social parody]]."<ref name=allen/> Allen’s lawsuit states that he did not consent to use of his image and did not agree to endorse American Apparel<ref>{{cite web
|url=http://money.cnn.com/news/newsfeeds/articles/apwire/d9d7cf039fd13c8ff2194b297148e6fe.htm
|title="Woody Allen Sues Over NY Billboard"
|publisher=Associated Press
|date=2008-03-31
|accessdate=2008-04-02.}}</ref>
===Airbrushing===
The sexually charged advertising has been criticized, but has also been lauded for honesty and lack of airbrushing.<ref>{{cite news
| last = Stossel
| first = John
| title = Sexy Sweats Without the Sweatshop
| publisher = ABC News
| date =2005-12-02
| url = http://abcnews.go.com/2020/Business/story?id=1362781
| accessdate = 2008-03-21}}</ref><ref>{{cite news
| last = Morford
| first = Mark
| title = Porn Stars in My Underwear
| publisher = San Francisco Chronicle
| date = 2005-06-24
| url = http://www.sfgate.com/cgi-bin/article.cgi?file=/gate/archive/2005/06/24/notes062405.DTL
| accessdate = 2008-03-21}}</ref> American Apparel images often display subjects with their blemishes, imperfections and asymmetrical features highlighted and attached with brief, personal descriptions.<ref name=push/> According to company policy all ads inside American Apparel stores excluding art exhibits, are untouched.<ref>{{cite news
| last = Goodwin
| first = Susan
| title = An American Dilemma
| publisher = Oregon Daily Emerald
| date =2006-01-18
| url = http://media.www.dailyemerald.com/media/storage/paper859/news/2006/01/18/Trends/An.American.Dilemma-1965414.shtml?norewrite200608252017&sourcedomain=www.dailyemerald.com
| accessdate = 2008-04-23}}</ref>
===Virtual Advertising in Second Life===
[[Image:Cc aa2.jpg|thumb|175px|right|Inside of American Apparel's Second Life Store]]
In the summer of 2006 American Apparel paid to design a virtual store on the private island named [[Lerappa]] ("Apparel" spelled backwards) in [[Second Life]]. <ref name=sec>{{cite web |url=http://secondlife.com/newsletter/2006_06/html/developer.html |title=American Apparel Breaks New Ground |accessdate=2008-04-28 |author= |date= |work= |publisher=Linden Research, Inc}}</ref> The two story building was modeled after American Apparel’s Tokyo showroom which occupied 6,000 square feet.<ref name=street>{{cite web |url=http://www.thestreet.com/story/10318273/1/american-apparel-finds-the-right-fit-in-second-life.html |title=American Apparel Finds the Right Fit in Second Life |accessdate=2008-04-28 |author=Robert Holden |date=2006-10-27 |work= |publisher=TheStreet.com}}</ref> American Apparel closed its virtual shop in the fourth quarter of 2007.<ref name=apress>{{cite web |url=http://www.americanapparel.net/presscenter/secondlife/ |title=Sorry, We're Closed. |accessdate=2008-04-28 |author= |date=2007-02-27 |work= |publisher=American Apparel Inc}}</ref>
== Corporate Culture and Employment ==
The production system of American Apparel centralizes most of its employees in a single location. By not outsourcing, Charney claims that he knows his workers better and that it ties them directly to the brand.<ref>{{cite web
| last = Carmichael
| first = Evan
| title = Dov Charney Quotes
| publisher = EvanCarmichael.com
| date =
| url = http://www.evancarmichael.com/Famous-Entrepreneurs/1699/Dov-Charney-Quotes.html
| accessdate = 2008-03-28}} "You know the face of your worker ... engineers and designers and finance people and knitters and dyers and chemists can come together in one location and say, ‘How can we do this better?’ You can produce products more efficiently than they can be made on an outsource basis."</ref> A banner on top of the downtown factory states "American Apparel is an Industrial Revolution." <ref>{{cite video
| people = Dov Charney
| title = American Apparel - Don Charney Interview
| medium = [http://youtube.com/watch?v=hYqR8UIl8A4 YouTube]
| publisher = CBS News
| year2 = 2007 }}@8:13</ref>
Charney has stated that American Apparel hires its creatives by their sense of culture and fashion, not their resume.<ref>{{cite video
| people = Dov Charney
| title = Charlie Rose
| medium = [http://video.google.com/videoplay?docid=-8906053411802681740 YouTube]
| publisher = PBS
| year2 = 2006 }} 32:00</ref> Conversely, the company has also been accused of focusing on personal style and outward appearance in its hiring practices for retail positions.<ref name=huff>{{cite journal
|author=Jamie Huff
|title=Sweatshop Free but Still Exploitative:Sexual Harassment at American Apparel|url=http://www.cofc.edu/chrestomathy/vol5/huff.pdf
|format=pdf
|journal=Chrestomathy: Annual Review of Undergraduate Research, School of Humanities and
Social Sciences, School of Languages, Cultures, and World Affairs, College of Charleston
|volume=5
|pages=153–67
|year=[[2006]]}}</ref>
American Apparel has been subject to four sexual harassment lawsuits, three were dismissed or settled.<ref>{{cite news
| last = Hall
| first = Caral
| title =Lawsuit has fashion mogul in spotlight
| publisher = Los Angeles Times
| date =2008-01-17
| url = http://server.finklawfirm.com/index.php?option=com_content&task=blogsection&id=6&Itemid=57
| accessdate = 2008-03-28}} "The case is the fourth against him alleging sexual harassment. One was dismissed. Two others were combined and settled. He has denied the charges in all of them." </ref> The fourth was appealed and remanded to arbitration.<ref>{{cite news
| last = Brennan
| first = Margaret
| title =American Apparel's Dov Charney: An Update
| publisher = CNBC
| date =2008-03-06
| url = http://www.cnbc.com/id/23500866
| accessdate = 2008-03-28}}</ref> In a video posted on the company website, Charney walked across his factory floor modeling a pair of men's briefs for his employees.<ref>Dateline NBC [http://www.msnbc.msn.com/id/14082498/ Josh Mankiewicz, "Sexy Marketing or Sexual Harassment?", NBC Television 7/26/06]</ref>
According to Charney, the unconventional corporate culture at American Apparel is responsible for the company's creativity and rapid growth.<ref>{{cite web
| last = Carmichael
| first = Evan
| title = Lesson #3: Conventions Are Not For The Creative Entrepreneur
| publisher = EvanCarmichael.com
| date =
| url = http://www.evancarmichael.com/Famous-Entrepreneurs/1699/Lesson-3-Conventions-Are-Not-For-The-Creative-Entrepreneur.html
| accessdate = 2008-03-28}} “We plan to continue to behave in a contrarian matter,” Charney says. “This creative environment is what got us to this point. We certainly aren’t going to stop doing it now after we created a highly profitable company.”</ref>
===Labor===
[[Image:Legalizelaaa.jpg|thumb|150px|right|[[Legalize LA]] banner displayed at company headquarters]]
As of 2007 the company employs over 6,700 people and operates over 180 retail locations in 13 countries.<ref>{{cite web
|url=http://www.fibre2fashion.com/news/apparel-news/newsdetails.aspx?news_id=52379
|publisher=Fibre 2 Fashion
|title= American Apparel to report Q4 2007 financial results
|author=
|date=2008-03-17
|accessdate=2008-04-05}}</ref> The company pays its manufacturing employees an average of [[United States dollar|US$]]12 per hour<ref name=nyp/>. According to the [[San Francisco Chronicle]] the average factory worker at the company makes $80-120 dollars per day, or roughly $500 per week compared to the $30-40 made daily at most other Los Angeles-based garment factories.<ref>{{cite news
| last = Strasburg
| first = Jenny
| title = Made in the U.S.A
| publisher = San Francisco Chronicle
| date =2004-07-04
| url = http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2004/07/04/BUGB67G1G21.DTL
| accessdate = 2008-03-27}} "At American Apparel, he says that he works 7:45 a.m. to 4 p.m. most days, with a lunch break, and makes anywhere from $80 to $120 per day. ...rarely earned more than $30 or $40 a day at other factories. ...Its sewing-machine operators commonly make more than $500 a week..."</ref> Employees also receive benefits such as paid time off, [[healthcare]], company-subsidized [[lunches]], [[Los Angeles County Metropolitan Transportation Authority|bus]] passes, free [[English as an additional language|ESL]] classes, on-site [[massage|masseurs]], free [[bicycles]] and on-site bike mechanics, free parking, and proper [[lighting]] and [[Ventilation (architecture)|ventilation]].<ref>{{cite web
|url=http://www.americanapparel.net/presscenter/articles/20040211salon.html
|publisher=Salon.com
|title=Made in the U.S. of A.?
|author=Linda Baker
|date=[[2004-02-11]]
|accessdate=2007-11-25}}</ref>. The company's employees in foreign countries do not receive the same hourly wages as their Los Angeles counterparts.<ref name=china>{{cite news
| last = Harmon
| first = Andrew
| title =American Apparel Expands To China
| publisher = DNR
| date = 2008-03-17
| url = http://www.dnrnews.com/site/article.php?id=1567
| accessdate = 2008-04-07}} "[Wages] will not be the same as the L.A. workers, but we will make sure that every worker in China receives at least a U.S. federal minimum wage per hour worked,” Charney said."</ref> However, employees in China, will earn [[List of U.S.A. minimum wages|US Federal minimum wage]].<ref name=china/> After going public, the company offered employees as much as $40 million in stock shares.<ref name=hawaii/> The plan grants employees roughly 1 share of stock for every workday they'd spent at the company.<ref name=stockprog>{{cite news
| last =
| first =
| title =American Apparel Announces Further Details of $39 Million Employee Stock Grant
| publisher = Business Week
| date = 2008-01-03
| url = http://www.reuters.com/article/pressRelease/idUS100724+03-Jan-2008+BW20080103
| accessdate = 2008-04-07}} "This equates to roughly one share of stock for each workday." </ref> Approximately, 4,000 of the company's employees are eligible for the program.<ref name=stockprog/> The waiting list for employment at American Apparel has over 2,000 names on it.<ref>{{cite news
| last = Bell
| first = Michele
| title = Dov Charney: Rebel With A Cause
| publisher = The Counnselor
| date =August 2004
| url =
| accessdate = 2008-03-29}}"There's a waiting list 2,000 names strong to work at American Apparel."</ref>
The company's employees are not unionized. In 2003, the [[Union of Needletrades, Industrial and Textile Employees|UNITE]] launched a union drive at the factory.<ref>Apparel News - Influential in 2002 - December 2002</ref><ref name=ITT>{{cite web
|url=http://www.inthesetimes.com/article/2270/
|title=Wolf in Sheeps Clothing
|publisher=In These Times
|author=Ari Paul
|date=[[2005-08-04]]
|accessdate=2007-12-19}}</ref> American Apparel countered that the union was ''"trying to politically force American Apparel into embracing it, regardless of worker interest."''<ref name=nation>{{cite news
| last = Charney
| first = Dov
| title = Letters: American Apparel & United
| publisher = The Nation
| date =
| url = http://www.thenation.com/doc/20040920/letter
| accessdate = 2008-03-26}}</ref> In a letter to [[The Nation]], Charney claimed that workers organized a [[grassroots]] protest of the union demonstration itself and used it as evidence of the union's unpopularity.<ref name=nation/> The organization reported American Apparel to the [[National Labor Relations Board]] for interference with the drive.<ref>Stephen Wishart. ''Behindthelabel.org'' (January 2005) [http://web.archive.org/web/20070407064236/http://www.behindthelabel.org/infocus.asp?id=84 The Truth Behind American Apparel: Sweatshop free or Union buster?]</ref> However, American Apparel was not charged as a result of the claims.<ref>{{cite web
|url=http://www.inthesetimes.com/article/2270/
|title=Wolf in Sheeps Clothing
|publisher=In These Times
|author=Ari Paul
|date=[[2005-08-04]]
|accessdate=2008-04-05}}</ref> As part of the settlement, the company posted document stating that it would not interfere with worker's rights to unionize.<ref>{{cite web
|url=http://www.inthesetimes.com/article/2270/
|title=Wolf in Sheeps Clothing
|publisher=In These Times
|author=Ari Paul
|date=[[2005-08-04]]
|accessdate=2008-04-05}} "As part of a no-contest settlement, the company voluntarily posted a notice informing workers that it would not interfere with their rights to organize."</ref>
===Support for immigration reform===
As early as 2001, American Apparel has been a vocal advocate for reform of U.S. immigration laws.
<ref>Louise Story - The New York Times - January 18, 2008[http://www.nytimes.com/2008/01/18/business/media/18adco.html?_r=2&ref=business&oref=slogin&oref=slogin]</ref> On May 1, 2002 American Apparel shut down its factory to allow the company's workers, many of whom are immigrants, to participate in a pro-immigration rally in downtown Los Angeles. Dov Charney, a Canadian immigrant, also marched alongside the workers.<ref> May 1,March for Workers Rights - 05_2002</ref> In addition to participating in this and a variety of subsequent immigration protests, the company has run a series of "Legalize LA" ads and billboards.<ref>The May Day Marches - Claire Hoffman - The Los Angeles Times - 2006-05-02 "The iconoclastic chief executive of American Apparel Inc. not only gave 3,300 of his employees the day off, but he also supplied them with T-shirts emblazoned with a pro-immigration message," "By noon, Charney had left the factory and joined his workers and their families, who had arranged to march together on Broadway," "American Apparel, with about 130 stores around the world, has a history of supporting May Day marches: In past years, employees were given half the day off and bused to protests.</ref> American Apparel participates annually in the May 1st Immigration March and Rally in downtown Los Angeles. In 2008, they added a route from their factory that eventually connected with other supporters near the city hall.<ref>[http://americanapparel.net/contact/legalizela/ American Apparel Homepage:] Legalize LA</ref>
=== Environmental policies ===
[[Image:Aasolar.jpg|thumb|175px|right|Solar panels on the roof of American Apparel's downtown factory]]
The company promotes [[environmentally friendly]] practices.<ref>PSFK - Piers Fawkes - October 4, 2007 [http://www.psfk.com/2007/10/why-build-sustainability-into-your-business.html "Why Build Sustainability Into Your Business?"].</ref> As of 2007 the company planned to increase its use of [[organic cotton]] within the next four years from over 20% to 80%. American Apparel also sells a line of shirts under the "Sustainable" label that are 100% [[USDA]] organic cotton.<ref>{{Citation
| last =
| first =
| title = American Apparel Organics: Sustainable Edition
| url=http://www.americanapparelorganics.com/indexContent.html
| accessdate = 2008-03-24 }}</ref><ref>{{Citation
| last =
| first =
| title = Sustainable Edition Organic Fine Jersey Short Sleeve T-Shirt
| url=http://store.americanapparel.net/2001org.html#i
| accessdate = 2008-03-24 }}</ref> It installed a 146 kilowatt [[solar power|solar electric system]] on its factory roof, designed to reduce power costs by at least 20%.<ref>RenewableEnergyaccess.com (January 27, 2006).[http://www.renewableenergyaccess.com/rea/news/story?id=42437 Downtown L.A. Clothing Company Goes Solar]</ref>
The company also recycles its fabric scraps.<ref>Josh Sims, "Organic Consumers Association" (July 6, 2006). [http://www.organicconsumers.org/2006/article_1014.cfm Look Good, Save the Earth]</ref> and maintains a bicycle lending program for its employees.<ref>{{cite news
| last =
| first =
| title = American Apparel bicycle program provides healthy benefits to employees and environment.
| publisher = Wearables Business
| date =2004-04-04
| url = http://www.allbusiness.com/labor-employment/worker-categories-garment-workers/7331718-1.html
| accessdate = 2008-03-24}}</ref> According to [[PETA]] it is a [[vegan]]-friendly clothing company.<ref>{{cite | title = Animal-Friendly Fashion Retailer, Cosmetics Maker Capture Youth Vote on peta2.com| publisher = PETA| date = Nov. 30. 2006 | url http://www.peta.org/mc/NewsItem.asp?id=9269| accessdate = }}</ref>
===Philanthropy ===
In 2005, the company hosted a [[Car wash#Bikini_car_wash|bikini car wash]] benefit with the [[American Red Cross]] to raise money for the victims of [[Hurricane Katrina]].<ref>{{Citation
| last = Hall
| first = Steve
| title = Bikini Car Wash Raises Money For Katrina
| url=http://www.adrants.com/2005/10/bikini-car-wash-raises-money-for-katrina.php
| accessdate = 2008-03-36 }}</ref><ref>[http://www.wireimage.com/GalleryListing.asp?nbc1=1&navtyp=CAL====139259&ym=200509 WireImage:] Pictures from American Apparel Carwash</ref> Two employees of the company packaged and delivered 80,000 shirts to the relief effort.<ref>{{cite news
| last =
| first =
| title = Delivering the Good -- News
| publisher = Los Angeles Garment and Citizen
| date =2005-10-12
| url = http://www.americanapparel.net/presscenter/articles/20051012lagarment.html
| accessdate = 2008-03-26}}</ref> As an underwriter of [[Farm Aid]], American Apparel donates the blank shirts that the organization prints and sells as merchandise.<ref>[http://www.farmaid.org/site/c.qlI5IhNVJsE/b.2802125/k.8EE7/About_Our_Apparel.htm Farm Aid:] Merchandise Description</ref><ref>{{cite news
| last = Grossberg
| first = Josh
| title = Farm Aid Gets Polka On
| publisher = E! News
| date =2006-08-31
| url = http://www.eonline.com/news/article/index.jsp?uuid=86bf1607-aa3f-4676-bd8f-d33adee3c65a&entry=index
| accessdate = 2008-03-26}}</ref>
==References==
{{reflist|2}}
==External links==
{{wikiquote}}
*[http://www.americanapparel.net/ American Apparel] Company Web Site
*[http://www.americanapparelstore.com/ American Apparel] Online Store
*[http://www.labbb.org/BBBWeb/Forms/Business/CompanyReportPage_Expository.aspx?CompanyID=13199717&hAKAID=1&hAddrID=1/ LA Better Business Bureau Report] on American Apparel
*[http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2004/07/04/BUGB67G1G21.DTL SFGate Profile] of American Apparel
*[http://abcnews.go.com/2020/Business/story?id=1362781 20/20 profile of American Apparel]
*[http://www.rooftopcomedy.com/watch/AmericanApparel A satirical video of the American Apparel ad campaign.]
[[Category:Clothing retailers of the United States]]
[[Category:Clothing brands]]
[[Category:Companies based in Los Angeles County]]
[[Category:2000s fashion]]
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