American Apparel sheds 'Made in USA' for Central American manufacturing
American Apparel is saying farewell to American manufacturing for the first time ever. The Gildan-owned brand that prided itself on its ‘Made in Downtown LA’ image is now producing shirts in Honduras and Nicaragua.
According to the New York Post, American Apparel is producing shirts for its wholesale division in Honduras and Nicaragua. The "Made in Honduras" and "Made in Nicaragua" shirts will begin to roll out this summer.
Parent company Gildan Activewear, which owns factories in Central America, is shedding the brand’s ‘Made in USA’ moniker to appease “price sensitive” customers. Despite the change in manufacturers, Gildan has not decided where the retail apparel will be made.
Gildan acquired American Apparel in February after the Los Angeles-based company filed for its second bankruptcy in November 2016. Following the $103 million acquisition, CEO Glenn Chamandy said that American Apparel products will continue to be made in the US, but it would also manufacture products elsewhere.
“We will be evaluating many factors, including the specific preferences for Made in USA, as we assess the opportunities related to bringing this brand to consumers over the coming weeks,” said Gildan spokesman Garry Bell.
American Apparel let go most of its staff in January and began closing stores around the world, including in France, the UK and Germany. The label is still operating 72 locations that are offering 80% discounts, but most of the retail locations will close in April.
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