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American Apparel's main factory and headquarters in Los Angeles
American Apparel, LLC is a clothing manufacturer and retailer based
in an 800,000 square foot factory in downtown Los Angeles, California. The
company is most well known for making basic cotton knitwear such as t-shirts and
underwear, but in recent years the product line has expanded to include tank tops, dresses, pants,
denim and accessories for men, women, children,
babies and dogs. American Apparel's most popular shirt, the 2001 Fine Jersey Short Sleeve T-Shirt, is a favorite of
screenprinters, especially those catering to the music industry. As a legacy of their history as a wholesale manufacturer, the
company refuses to place any visible American Apparel tags or logos on the outside of their clothing. The company has become the
largest t-shirt manufacturer in the United States and operates the country's largest garment factory, where it pays its employees
an average of US$12 per hour[1]. Employees also receive benefits such as paid time off, healthcare, company-subsidized lunches, bus passes, free ESL classes, on-site masseurs, free
bicycles and on-site bike mechanics, free parking, proper lighting and ventilation, and the most up-to-date
equipment[2]. The
company employs more than 5,000 people and operates 155 retail locations in 11 countries.
American Apparel is a prominent practitioner of forward vertical integration, a
business model that seeks to create tangible benefits through centralization of the entire manufacturing, design, marketing and
retail process. Pioneered by companies like Carnegie
Steel and Ford Motors, vertical integration seeks to streamline the businesses
that employ it through physical proximity, with the goal of higher quality, quicker reaction time, and more integration of design
and manufacturing. At American Apparel, vertical integration is marked by a lack of outsourcing, a quicker turnaround time from design concept to finished product, open input about the entire
product line from any department, and the accessibility of upper management, including the C.E.O. [3]
The company is currently in the process of large retail growth, opening stores in the United
States, Israel, Japan, Korea, Netherlands, Switzerland,
Germany, Canada, the UK,
France and Mexico. The company has also announced plans to open
stores in Belgium, Italy, and Spain. [4] On December 19th American Apparel
announced its takeover by Endeavor Acquisition, a "special-purpose acquisition company" formed for the sole purpose of seeking
out takeover targets. The deal, due to be completed this year, will allow American Apparel to go public without the scrutiny that
attends most stockmarket listings. Endeavor is currently traded on the American
Stock Exchange, under the symbol EDA.[5]
It was recently ranked 308th in Inc. Magazine's annual list of the 500 fastest
growing companies in the country, with a 440% three-year growth and revenues in 2005 of over US$ 211 million.[6]
Environmental policies
The company also strives toward environmental friendliness[7] . Currently, over 20% of the cotton used by American Apparel is organic and the company recycles its fabric scraps. Over the next four years,
the company plans to convert more than 80 percent of its cotton consumption to organic
cotton.[8] American Apparel has also installed a 146
kW solar electric system on the roof of its
downtown Los Angeles factory. The system is expected to cut the company's electric bill by at least 20%.[9]
Work environment
The source of most criticism for the company is their sexually charged advertising and unconventional corporate
culture[10] . American Apparel's CEO, Dov Charney, was also accused of a "hostile work
environment" [11] by three female employees (two lawsuits
have been dropped), and reportedly had oral sex performed on him by a female employee and
masturbated with consent and at home during a two-month interview with Jane reporter Claudine Ko.[12] The company is criticized for its sexually charged advertisements, which feature suggestive photos
taken in an amateur-pornographic style reminiscent of Calvin
Klein's ad campaign in the 1990s, and been accused of focusing on personal style and outward appearance in its hiring
practices for retail positions, similar to those of Abercrombie & Fitch.
Conflict with UNITE
Also, Behindthelabel.org, an online magazine
funded by UNITE HERE, reported union busting in the
LA-based factory in September 2003.[citation needed] It is reported that the workers wanted to form a union to address issues
concerning no paid time off, lack of affordable healthcare, production methods, and poor treatment by supervisors.[citation needed] However, as soon as organizing
efforts began, the American Apparel employees countered with an anti-union rally.[citation needed] It is worth noting that on another occasion, the workers staged a walk out
when management switched the sewing procedure to one they felt would earn them less.[citation needed] Without a union they were able to
use their collective power to negotiate on their own terms.[citation needed] The incident was reported to the National Labor Relations Board for violations of Federal labor laws, and a no fault
settlement was eventually reached with the NLRB.[citation needed] American Apparel now posts in their production facility a document agreeing
not to conduct any anti-union activities.[citation needed]
American Apparel's union status has not been reported since[13], and the company refuses to respond to correspondence or inquiries regarding union
status.[citation needed]
Recent features in film and television
American Apparel is featured in the 2007 indie film Let Them Chirp Awhile written and directed by Jonathan
Blitstein, which stars Laura Breckenridge, Brendan Sexton III, and Justin Rice. In the film, Charlotte,
played by Swedish actress Charlotte af Geijerstam, is the quirky American Apparel employee who
helps the main character, Bobby, search for his lost dog.
The lead article in the September 20, 2007 issue of the parody newspaper The Onion is about
the company's models being "freed in a daring midnight raid."
References
- ^ New York Post - T-Shirts, As
Far As the Eye Can See - Maxine Shen - March 24, 2004
- ^ Salon.com - "Made in the U.S.
of A.?" - Linda Baker - February 11, 2004
- ^ History Channel - Modern Marvels
Series-Cotton
- ^ New York Times Magazine - Jamie Wolf - April 23, 2006. And You Thought Abercrombie
& Fitch Was Pushing It?.
- ^ The Economist-January 4th 2007.American
Apparel's unusual flotation is typical of Dov Charney, its founder.
- ^ inc.com (August 2006).Inc. No. 308: American Apparel.
- ^ PSFK - Piers Fawkes - October 4, 2007 "Why Build
Sustainability Into Your Business?".
- ^ Josh Sims, "Organic Consumers Association" (July 6, 2006). Look Good, Save the Earth.
- ^ RenewableEnergyaccess.com (January 27, 2006).Downtown L.A. Clothing
Company Goes Solar
- ^ Newsweek - Jennifer Ordoñez - June 26, 2006"California Hustlin'".
- ^ Josh Dean. Inc.
(September 2005). Dov
Charney, Like It or Not.
- ^ Claudine Ko, "Meet Your New Boss" JANE (June-July 2004), 136-141.
- ^ Stephen Wishart. Behindthelabel.org (January 2005). The Truth Behind American Apparel:
Sweatshop free or Union buster?.
External links
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