Bankruptcy compels the renowned US-based retail apparel manufacturer to clear out its stocks, while its founder and designer lays out plans to resurge his presence in lifestyle fashion industry
Two years before, an artist-cum-businessman, who gained world recognition from making T-shirts with offbeat designs, had lost a majority of his financial acclaim after the sales of his lifestyle brand started plummeting uncontrollably. But, the brand’s customers as well as people around the world are still ready to fill their wardrobes with innovative designs of trendy casuals, encouraging such destitute designers to pick up from where they left off. A well-known personality in the industrial dominion of lifestyle fashion, Dov Charney, has considered his revival. After gaining worldwide acclaim as American Apparel’s founder, Charney is planning to restore his title as a successful designer-turned-entrepreneur, even after the clothing company filed for insolvency in 2015.
Fashion enthusiasts are well aware of how American Apparel, a retail clothing manufacturer from Los Angeles, lost its competence to sustain as a brand in the global industry for lifestyle apparels. Years after the company incurred devastating sales dip in 2009, which compelled it to file chapter 11 bankruptcy in the US in 2015, American Apparel’s founder Dov Charney has now recovered from this setback by recently announcing his plans of setting up a new clothing business in Los Angeles and London. The yet-untitled lifestyle fashion business will be helmed by the Canadian designer, who intends to set up a T-shirt manufacturing factory in Europe and employ nearly 50 industry professionals for handling business operations from Los Angeles. Dov’s new apparel line will undergo changes that help it provide quick reversals for online retailers and vendors linked to the global music entertainment industry. While American Apparel is still known for being among the largest apparel manufacturer in North America, Dov’s new clothing line will not be drawn into it.
The development of this new lifestyle apparel line by Dov Charney will lead to establishment of a factory in London or Paris, details of which are tentative at this moment. American Apparel’s UK stores are suffering falling sales, which is likely to work out as a comeback for Dov to restore faith in his European customers. Charney clarified that high production costs in US did not cause the downfall of American Apparel, alleging hedge fund groups for mismanagement of the company. While Dov tackled controversies arising from several lawsuits, American Apparel is now being agreed to be acquired by Canada-based clothing manufacturer, Gildan Activewear, for an all-cash buyout of reportedly US$ 66 million.