Rumor: American Apparel to Begin Outsourcing Manufacturing?

Since being founded in 1989 by Canadian Dov Charney, American Apparel has thrived as a manufacturer that prides itself on producing garments, and jobs, in the United States, more specifically Los Angeles. With an ever increasing pressure to produce apparel that is a bit easier on the wallet, the brand’s founder was recently quoted that he may look into outsourcing some of the manufacturing work to overseas factories, hence flipping the company’s long-established business model on its head. An excerpt from the article can be read below:

At the helm is Charney, 43, an outspoken advocate for local manufacturing who founded the company 14 years ago. In a recent interview he acknowledged pressure from other company executives, board members and consultants to move manufacturing abroad.

“I want to prove myself,” he said, “and I want to prove ‘made in America’ is a smart business.”

Charney conceded that the company’s finances could eventually push it to start making some products overseas.

“To say that I’m never going to import from overseas would be unreasonable,” he said during an interview at his colorful factory office strewn with new designs being tested for fit. “At this time our business concept is to make everything here. But I wouldn’t rule anything out.”

At the moment this is all speculation, however it does make one wonder, would American Apparel lose its appeal if its not entirely made in America? Read the full article here.

Source: HUH.