Case Study American Apparel Drowning In Debt

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American Apparel: Drowning in Debt

I have decided to complete my final project on American Apparel which was founded in 1998, by Dov Charney. This company is unique for two main reasons: it has been called an environmentally and socially responsible operation. It’s also a domestic producer—which is rare among U.S. clothing lines—because they sell in both wholesale and retail sectors (Stoel, 2015). The company’s mission was “to make great quality clothing without using cheap “sweatshop” labor and exploiting workers (2016). They explained that the reason behind this mission was that they wanted to create products that would recreate the classic T-shirt everyone saw as a western culture and freedom. They describe their styles as, “iconic,” “clean,” “simple” and “timeless.” They wanted to create clothing that people would love to wear but also ensure that the production of these garments didn’t come at the expense of cheap labor (Menta, 2016). American Apparels believed that their core values were …show more content…

This will continue to be a challenge for not only American apparel, but any business in the fashion industry that doesn’t keep up with the biggest change over the past few years which is technology. There are now so many industries going overseas for production of their product not only because of labor costs being cheaper but because other countries are leading in the industry of technology, especially when it comes to production lines. Technology has progressed so much over the years that there are companies that are even transitioning to manufacturing solely by robotic devices. Looking to the future it has become apparent that technology will completely take over, so in order for overall financial success American Apparel and others will need to transition to a technology friendly

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