Published on : Jul 29, 2015
America Apparel, under the leadership of recently appointed CEO Paula Schneider has been shutting down stores, shifting excess inventory, and laying off corporate and factory workers in a move to save money, which the company has been working on.
Schneider has taken over the company earlier in the year from its troubled founder, Dov Charney, who is held responsible for the company’s vision for ill and good.
To improve the company’s tarnished image from Charney’s sexualized approach for marketing, Schneider is committed to Charney’s ‘Made in the U.S.A’, production.
Dov Charney, who is regarded as the embattled founder of the American Apparel, and is still trying for a comeback, is dedicated for the factory employees and their jobs- which is the main reason for their continued support for him.
Without Dov Charney’s leadership, it is not clear if American Apparel will be able to manufacture clothing in the U.S., especially if it persists compete with chains such as H&M, and Gap that ate outsourcing production out of the country.
In times when Rana Plaza disaster in Bangladesh has become the talk of wrongdoings of apparel manufacture, and in the middle of continued reports of pathetic work conditions in apparel unit overseas. American Apparel is in a standing out position for manufacture of apparel in the U.S., in spite of high costs.
The unique stance for the company is the marketing opportunity, but the company is also in deep financial trouble.
The new CEO of American Apparel stated that she is committed for the company’s sweatshop-free ethos, but stressed upon the need for the company to augur sales and close underperforming stores. To keep with the move, the company is also on a spree to lay off workers that are involved in production, administration, and in retail in the past year.