The true story of what happened to American Apparel, after its CEO left amidst flurry of scandal
One of the fastest growing retail outlets of the nineties and noughties, American Apparel was known for its wide variety of basics in pretty much every colour known to man – along with their high-waist disco pants, ubiquitous on nights out and at house parties.
However, American Apparel seemingly disappeared as quickly as it arrived; after its flamboyant CEO (and 'face' of the brand) Dov Charney was ousted by the brand's board in 2014, after a series of allegations of misconduct (which he has denied), the company plunged into freefall. Shops shuttered across the globe (with its final UK branch, in Camden, London, closing in 2017).
The latest episode of Netflix's popular documentary series Trainwreck explores the weird world of American Apparel, with former store workers revealing just how they were treated by Charney – and how the store changed their lives (not always for the better).
Here, we examine what happened to American Apparel – and whether it ever really recovered from the scandal it was mired in.
American Apparel courted controversy from its inception in 1989. When it started, Charney initially used to sell his merchandise wholesale, before dominating the retail market. What made it stand out from competitors was how all the clothing was made in American factories, which made it quicker and cheaper than other outlets, which often relied on clothes produced in factories abroad at a cheaper cost.
It was when American Apparel launched as a retail shop in its own name that the brand gained widespread attention; advertising was often sexually suggestive and provocative. As well as using models, American Apparel got its staff to showcase their clothes (Charney also appeared in some advertisements), as well as using porn stars for some ad campaigns.
'I do think there's something to be said for photography that challenges cultural norms, that challenges what people think are right and wrong,' Charney said in a previous interview. 'People are going to buy into authenticity. It's not like everybody likes 'Walt Disney' perfect. The imperfect is often more appreciated than the perfect.'
However, many of the advertisements used to promote the brand were banned for being voyeuristic or provocative.
The sexualized imagery of American Apparel extends well beyond the advertising. After Charney was ousted as CEO in 2014, the Los Angeles Times revealed a disturbing number of allegations regarding Charney's conduct while running the company.
Charney was alleged to have told accounting employees that they were 'Filipino pigs… with your faces in the trough', as well as miming holding a shotgun to an employee's forehead. Other accusations include storing footage on company equipment of himself having sex with models and employees, as well as sending sexually graphic texts to people he worked with. Lawyers on behalf of Charney denied all allegations, and pointed towards harassment lawsuits that had previously been filed by five former employers in 2011 all being dismissed or going into arbitration.
Charney has always denied all allegations of misconduct, and has never faced trial over anything he has been accused of.
With the company mired in scandal, American Apparel never seemed to really recover. Faced with an increasingly challenging space in the retail market, the company (now led by fashion executive Paula Schneider) filed for bankruptcy in October 2015. A takeover bid in 2016 by Hagan Capital Group and Silver Creek (two investment firms thought to be aligned with Charney) was rejected.
Having first opened in London in 2004, with further stores opening across the country, American Apparel's financial woes saw 12 out of its 13 shops forced to close in December 2016. Its final store, in Camden, North London, shuttered for good in 2017.
Yes and no. American Apparel was bought for $88 million (£64 million) in 2017 by Canadian sportswear manufacturer Gildan Activewear. The new owners decided to close all 281 stores and relaunched American Apparel as an online only brand in 2017. The website claims American Apparel is 'committed to leading ethical and sustainable practices'.
Elsewhere, Charney is still working in the fashion industry. In 2016, he founded Los Angeles Apparel, which looks to replicate the early success of American Apparel. On Instagram, Charney confirmed that a Los Angeles Apparel store will be opening in New York City later in 2025. He has also worked alongside Kanye West and his Yeezy brand in 2023, but distanced himself from the singer after West made a string of antisemitic comments.
Kimberley Bond is a Multiplatform Writer for Harper's Bazaar, focusing on the arts, culture, careers and lifestyle. She previously worked as a Features Writer for Cosmopolitan UK, and has bylines at The Telegraph, The Independent and British Vogue among countless others.
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