Question

Decide in 100 words American Apparel: What did they do well? Is there anything they didn't consider? please type

Answer 1

The journey of American Apparel is a prime example of what can happen when a failed company is sold for parts, and new owners restart. This decline has only followed a tidal wave of bankruptcies in retail and store closures that started in early 2017, affecting stores like Macy's, The Limited and Payless. Several stores never came back up (Toys 'R' Us), and others (Nasty Gal) like American Apparel were bought out of bankruptcy.

All of American Apparel 's stores shut down after the acquisition but the company wasn't gone. In August 2017, it relaunched its website and while it looked much like the old American apparel, it was Gildan under the hood. The company's first order of business gave e-commerce consumers the option of choosing between goods manufactured in the US and cheaper, similar parts produced abroad — a revolutionary break from the original manufacturing culture of American Apparel.

American Apparel also produces some of their garments in the USA. Often the best supplier for a product category is located in the home; Vivi Tran Lynch, former director of sourcing for American Apparel, said in July that the company is using a swim manufacturer in LA because it offers the right balance of quality and price. (Lynch has since left the business for the Self Esteem apparel brand)

That's the thing about the brands going under and back in an altered state, zombie-like. Industries are continually mutating, closing down offices which are not financially viable, and discontinuing goods which are not selling. But when a brand is bought out of bankruptcy, it becomes eminently clear what portions of its business still have value, because that's all it's allowed to continue living on.