American Apparel Laying Off 2,400 Employees
American Apparel is beginning to wind down operations. The company is laying off roughly 2,400 employees after Gildan Activewear got the green light last week to buy some of American Apparel’s assets. Gildan, however, didn't agree to buy American Apparel's 110 stores or manufacturing facilities. The job cuts at the company’s Los Angeles headquarters and manufacturing hub come two months after American Apparel filed for bankruptcy.
Total Retail’s Take: It’s never good to hear that a company is going under, especially when 2,400 jobs are lost. American Apparel is just one of the many once-successful retailers filing for bankruptcy and/or closings stores. The Limited recently announced that it has fled for bankruptcy protection and closed all stores with the intention of going out of business, while Macy’s plans to shutter 68 stores across the country. Unfortunately, retailers are having to fight harder for consumers’ dollars with increasing competition from Amazon.com and fast-fashion brands. Unfortunately, I’m sure we will hear about more brands crumbling under the pressure soon.