From Cult Favorite to Corporate Collapse: The Rise and Fall of American Apparel
I suppose you’re obviously clueless about American Apparel’s epic unraveling, so buckle up. Founded in 1989 by Montreal-born maverick Dov Charney, American Apparel built its reputation on sweatshop-free basics and boundary-pushing ads. By the mid-2000s, you couldn’t swing a tie-dye tee without hitting one of their 200+ stores, according to Netflix’s Trainwreck: The Cult of American Apparel. But before you pat yourself on the back for owning that colorful tee, let me walk you through how this fashion cult imploded.
Charney’s downtown Los Angeles factory—hailed in California Apparel News as the largest garment plant in the U.S.—employed some 4,500 workers at above-minimum wages. Yet former staff like Jonny, a district merchandising manager in Netflix’s doc, describe recruitment as a “vibe check”: tall, skinny “weirdos” were prized for living the brand aesthetic. One slogan allegedly joked, “If you see someone shoplifting, let ’em know we’re hiring.” Michelle, a sales associate, admitted she once wore stolen gear to her interview—and was hired on the spot. Charming? More like cultish.
Under Charney’s impulsive leadership, employees bragged about 60-hour weeks being the norm. “If there was a 40-hour week it was because you were sick,” recalls E.J., another ex-staffer. Carson, a former store manager, was so busy he had to prove his overtime via security cameras. That kind of grind could earn you a promotion—if you survived the chaos.
Of course, all that hustle fizzled in 2014 when Charney was ousted amid sexual misconduct allegations. E! News reached out, and his spokesman pointed to confidential arbitration rulings rather than any public admissions of wrongdoing. Meanwhile, lawsuits filed by former employees quietly disappeared behind sealed documents. Netflix’s Trainwreck compiles graphic testimonials of late-night proposals, lewd emails and an environment where “using sex to sell” was the company motto—Charney himself told The New York Times in 2004, “It’s nice when a girl tries on a bra…’Ooh, I love it.’”
After Charney’s departure, the brand went into freefall: bankruptcy, shrinking storefronts and a failed attempt to reboot online. Today, American Apparel’s vivid ads are relics, and Charney has moved on to new ventures while defending his actions at every turn.
Now you finally get the gist of why your once-beloved cotton crop-top empire collapsed under its own arrogance and scandals. Glad I could clear that up for you.
Sources: Celebrity Storm and Netflix’s Trainwreck: The Cult of American Apparel; E! News; The New York Times; California Apparel News
Attribution: Creative Commons Licensed
