American Apparel also sells a line of shirts beneath the “Sustainable” label which are 100% USDA natural cotton. In 2008, American Apparel purchased over 30,000 pounds of organic cotton generally known as B.A.S.I.C cotton. After the passing of Prop 8 (which defines marriage within the state as one man and one lady) in California in November 2008, American Apparel launched the Legalize Gay campaign. It is much like the Legalize LA marketing campaign, and shirts with “Legalize Gay” and “Repeal Prop eight” printed on them in the identical fashion as the shirts of Legalize LA are sold by the corporate.
For a time, Charney used a branding strategy that spotlighted his therapy of workers, selling American Apparel’s items as “sweatshop free”. In 2014, the company released a controversial ad with a topless model, and the words “Made in Bangladesh” throughout her chest, in an effort to attract consideration to the company’s fair labor practices. In 2008, the corporate took out a series of political ads featuring the company emblem that known as present immigration legal guidelines an “apartheid system”. After shedding money for six consecutive years, American Apparel filed for Chapter eleven bankruptcy within the U.S. on October 5, 2015, within the United States Bankruptcy Court for the Central District of California.
Charney has maintained his innocence in all the lawsuits, telling CNBC that “allegations that I acted improperly at any time are completely fiction.” The board of directors voted to strip him of his place of chairman in June 2014 and fire him as CEO. Charney responded with legal motion attempting to retain his positions. Charney has stated that American Apparel hires its creatives by their sense of culture and style, not their resume. He’s acknowledged that the company is open about sexuality and its tradition because “younger folks like honesty.”
- The company depends on environmentally friendly practices and is understood for its improvements in sustainability as a result of vertical integration.
- As an underwriter of Farm Aid, American Apparel donates the blank shirts that the organization prints and sells as merchandise.
- In addition, they packaged and delivered eighty,000 shirts to the relief effort in New Orleans and the Gulf Coast.
- In 2005, the corporate hosted a bikini automotive wash benefit with the American Red Cross to raise cash for the victims of Hurricane Katrina.
In 2007, proper before Christmas, American Apparel donated more than 300,000 articles of clothing, with the giveaway particularly concentrating on the homeless inhabitants of large cities. The company is determined by environmentally friendly practices and is thought for its improvements in sustainability as a result of vertical integration. This in any other case wasted materials reduces the amount of fabric the company needs to produce in addition to increasing its product line and saves roughly 30,000 pounds of cotton per week. American Apparel maintains a bicycle lending program for its staff and based on People for the Ethical Treatment of Animals it’s a vegan-pleasant clothes company. As of 2007 the company deliberate to increase its use of natural cotton throughout the subsequent 4 years from over 20% to eighty%.
In 2009, an ICE audit of American Apparel’s employment records uncovered discrepancies in the documentation of about 25% of the corporate’s workers, implying primarily that they were undocumented immigrants. About 1,500 employees were let go in September of that 12 months in consequence. As of 2008, the company employed greater than 10,000 folks and operated more than 200 retail locations in 20 countries.