Saturday, April 12, 2008

American Apparel In the WSJ

I came across a provocative article about American Apparel following their recent IPO on the front page of the Wall Street Journal today:

http://online.wsj.com/article/SB120796037535209509.html?mod=todays_us_nonsub_page_one

(I saved the article to my desktop, so let me know if you can't see the link and I can email it to you!)

The majority of the article focuses on the various controversies surrounding the company and CEO Don Charney. Since we debated briefly during the first class about whether the company could be considered ethical I thought you all would find this interesting.

The article spends little time discussing the "ethical" foundations of the company... really only mentioning it in one paragraph:

"At a time when many large clothing makers were moving their manufacturing overseas, Mr. Charney attracted attention to the brand by electing to make all of the company's clothes in a Los Angeles factory and by championing social causes like immigration reform and universal health care. Tailors at American Apparel's factory receive subsidized health-care benefits and generally make twice the minimum wage. The factory's proximity also allows Mr. Charney to create new designs, and get them to stores, the week after he's conceived them, a speed unheard of in the industry."

Phrased this way it sounds like the Charney's motivation for operating overseas was based more on quick style turnaround than any social cause. From the overall tone of the article, it's not too hard to tell the author's negative opinion on the company... I'm inclined to agree :) Anyways, enjoy!

1 comment:

Juan said...

I'm not exactly sure which "new" designs he's rolling out. Most American Apparel items are more generic than your standard polo shirt.

I know that American Apparel does not use union labor and because of that are not in favor with many socially responsible fashionistas (who prefer no sweat and other union-made brands).