At American Apparel’s peak, it was one of the most popular teen retail stores in the 2000s. Controversial CEO Dov Charney and sexual marketing made the brand, but that is also what led to its fall from grace. Will a new turnaround plan be enough for investors and consumers to get behind the retail brand?
“Dov Charney was way ahead of his time from the point of view of what he was doing right,” said Jan Rogers Kniffen, CEO of J. Rogers Kniffen WWE. “He was manufacturing in the U.S. He was taking on all the social issues. He was all about perfecting immigration, LGBT rights, not using models who were made up or airbrushed or anything.”
But he was also doing a lot of things wrong. Allegations of sexual harassment surfaced around Charney, and people started to wonder if American Apparel’s overtly sexualized image went too far. In 2014, the board of American Apparel ousted Charney.
CORRECTION (January 22, 2020): At 2.49, we stated American Apparel had about 60 stores and revenue of over $275 million. American Apparel had 103 stores and revenues of more than $210 million.
At 4:18, we stated American Apparel closed more stores than it opened in 2009. American Apparel started closing more stores than it opened, shrinking its footprint, in 2010.
At 2:15, we stated that American Apparel shifted manufacturing to Mexico. American Apparel experimented with manufacturing in Mexico after its products were produced in South Carolina and Los Angeles.
At 3:33, we stated same-store sales growth at American Apparel was 7% in 2006. It was 5%.
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The Rise And Fall Of American Apparel
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