Is American Apparel Discontinued? What Happened?

1989–2017 Retail • United States

Fate: Entered Chapter 11 in Oct 2015 and again in Nov 2016; intellectual property acquired by Gildan Activewear in Jan 2017. U.S. retail stores closed; brand later continued online under new ownership.

American Apparel store
Source: Wikimedia Commons

American Apparel began in 1989 as a North Carolina-based wholesale T-shirt maker and grew into a vertically integrated fashion brand centered on Los Angeles manufacturing, rapid replenishment, and minimalist basics—T-shirts, hoodies, leggings, and bodysuits. Its stores highlighted "Made in USA" labor messaging and a distinctive, often provocative advertising style that made the label a pop-culture fixture in the 2000s. By mid-decade the company expanded from wholesale into hundreds of branded stores, supported by in-house cutting, sewing, and dyeing that enabled quick turns and quick turns and a range of colors.

Rapid growth, leverage, and operational complexity—plus intensifying competition from fast fashion and e-commerce—strained margins. Governance controversies and leadership turmoil further distracted the business. The company restructured after filing for Chapter 11 in 2015, then filed again in 2016 as sales and liquidity pressures continued. In early 2017, Gildan Activewear acquired the American Apparel trademarks and certain assets. Remaining U.S. stores were liquidated. Under new ownership, the brand continued primarily online/wholesale, leveraging name’s recognition while the retail footprint disappeared.

For many shoppers, American Apparel still evokes a specific aesthetic—clean basics, saturated color palettes, cotton jersey—and a moment when "Made in USA" branding was central to a mall era that has largely shifted to digital.

Timeline

  1. 1989

    • January — Company founded as a T-shirt venture.
  2. 1997

    • Establishes production in Los Angeles.
  3. 1999

    • AmericanApparel.net was launched.
  4. 2003–2005

    • Accelerates vertical integration and opens branded retail stores; moves beyond wholesale basics.
  5. 2007

    • December — Goes public via reverse merger (Endeavor Acquisition), supporting rapid global expansion.
  6. 2015

    • October 5 — Files for Chapter 11 bankruptcy and restructures operations amid declining sales and debt.
  7. 2017

    • January 10 — Gildan Activewear acquires American Apparel, closing U.S. stores and relaunching the brand online.

Frequently Asked Questions

Who created American Apparel?

American Apparel was founded by Dov Charney in 1989 as a wholesale T‑shirt company before expanding into a full fashion brand.

What was American Apparel known for?

It was known for “Made in USA” basics, fast in‑house manufacturing, bright color palettes, and provocative advertising that became part of 2000s pop culture.

When did American Apparel shut down?

The company filed for bankruptcy in 2015 and again in 2016. Its remaining U.S. stores were liquidated after Gildan Activewear bought the brand’s trademarks in early 2017.

Where were American Apparel products made?

Most cutting, sewing, and dyeing took place in Los Angeles. The brand used domestic manufacturing as a core part of its identity.

Why did American Apparel fail?

Rapid expansion, rising costs, leadership turmoil, and competition from fast fashion and e‑commerce strained the business. Sales and liquidity pressures led to two bankruptcies.

Does American Apparel exist today?

Under Gildan, the brand continues mainly online and in wholesale. The retail stores are gone, but the name still appears on basics that lean on the original aesthetic.

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