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American Apparel Is Coming Back – But Only Online

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After filing for bankruptcy in 2016 and shutting down stores this year, American Apparel is attempting to make a comeback for “Summer 2017.”

Originally, Canadian t-shirt company Gildan Activewear (the company who bought out American Apparel) announced that both the physical and online stores would be closing down for good. Now it seems that Glenn Chamandy, CEO of Gildan Activewear, has changed his mind.

During an interview with Business Of Fashion, Chamandy believes that the clothing company can still be used to gain a profit, especially considering the company made $600 million alone in online sales. He said:

“This will hopefully be one of the best acquisitions the company has ever made, in terms of return on investment, so we’re very excited about it.”

The site is currently still under construction, but should be available over the next two weeks. Chamandy also explained that when the company returns, it will only be online, with no physical stores in the foreseeable future.

Despite this hopeful comeback, the clothing will no longer be made in Los Angeles. Gildan Activewear plans to manufacture most of the clothing overseas, making all of the merch less expensive. This is troublesome considering that American Apparel’s main motto is: “made in the USA.”

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According to Reuters, 90% of Gildan Activewear’s employees are located in countries in Central America and the Caribbean. Despite this, American Apparel will still continue to manufacture a portion of their clothing in the United States (although it’ll be more expensive).

The founder of American Apparel, Dov Charney, created a new, smaller, rival company called Los Angeles Apparel last year. Despite the competition, Chamandy isn’t too worried.

He said:

“Good luck to him. But at the end of the day we’re well positioned. We have a significant investment and the capital able to support our brand.”

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The company is currently doing well by just by selling basics to wholesalers, who then customize the items. If this keeps up, American Apparel can manage to hopefully bring itself out of the dark when the site officially goes up.

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