For the first time in American Apparel’s 28-year history, its items are being made outside the U.S. The company, which prided itself on being the largest domestic apparel maker, is now producing shirts in Honduras and Nicaragua, a person familiar with the matter said. Gildan Activewear, which bought American Apparel out of Chapter 11 earlier this year, later confirmed the Central American production — and said that labels denoting “Made in Honduras” and “Made in Nicaragua” will start appearing on its clothes this summer.
Total Retail's Take: With American Apparel in the midst of closing its stores and e-commerce site (it will be taken over by Gildan Activewear), the next shoe to drop figured to be the ending of American production of its products. Gildan purchased the apparel retailer out of bankruptcy in January, and it was only a matter of time before Gildan moved all manufacturing to Central America, where it already operates fabric and sewing factories. It remains to be seen if more manufacturing jobs come back to the U.S., but for the time being "American" Apparel is a thing of the past.