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Report: American Apparel Manufacturing Shirts Overseas

April 11, 2017

For the first time in its 28-year history, American Apparel, Montreal, is manufacturing some of its items outside the United States, according to a recent New York Post report.

The publication cited “a person familiar with the matter” as saying the company now is producing shirts for its wholesale division in Honduras and Nicaragua. Gildan Activewear, which bought American Apparel out of Chapter 11 earlier this year, later confirmed the Central American production, and said “Made in Honduras” and “Made in Nicaragua” labels will start appearing on its clothing this summer.

Gildan operates fabric and sewing factories in Central America. American Apparel’s wholesale division sells shirts to corporate customers, including those who print concert-related shirts. Those customers are much more price sensitive, says Garry Bell, vice president of corporate communications and marketing, Gildan.

According to the report, Gildan has not yet determined where its retail apparel will be made. “We will be evaluating many factors, including the specific preferences for Made in USA, as we assess the opportunities related to bringing this brand to consumers over the coming weeks,” Bell says.


Most of the remaining 72 stores are closing this month, according to the American Apparel website. The stores and e-commerce site are being operated by American Apparel management now, but the e-commerce will switch over to Gildan. The company also has hired former American Apparel merchandising and marketing executives, who will work out of Los Angeles, Bell says. — J.L.

 


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