American Apparel Hasn’t Been the Same Since Its Controversial CEO Dov Charney Was Fired

The early aughts fashion trends, which are making a comeback in mainstream culture, are no coincidence. The era was a time when provocative and risque clothes were the norm and readily available at your local mall. During those days, if you really wanted to make a statement, you shopped at American Apparel.

The Los Angeles, Calif.-based retailer achieved meteoric success in the '80s, '90s, and 2000s due to its fun and edgy pieces. The brand also stood out against the competition by exclusively producing its clothes in the U.S. and promoting "Made in USA" manufacturing.

After nearly two decades under the leadership of its founder, Dov Charney, American Apparel underwent significant internal changes, forcing it to rebrand. Here's the scoop.

American Apparel was undoubtedly one of the retail industry's golden children during its heyday. At its peak, the company had more than 250 American Apparel stores worldwide, with an estimated worth of $630 million. However, according to Glossy, the brand began experiencing issues with its CEO and eventually, its finances.

Dov, who created American Apparel in 1989, was ousted by his company's board in 2014 following multiple sexual misconduct allegations.

During his American Apparel reign, Dov's sexual assault and misconduct accusations followed him and his brand. In 2005, Jane Magazine journalist Claudine Ko wrote that he masturbated in front of her throughout the interview. He continued to deny any allegations of misconduct, even after he was fired from American Apparel.

In addition to Dov's alleged behavior, American Apparel was also struggling financially and hadn't made a profit since 2009, eight years before Dov stepped down. The company also filed for Chapter 11 Bankruptcy twice. In 2017, three years after the CEO was fired, more than 100 stores worldwide closed before Canada-based T-shirt conglomerate Gildan purchased the company for $88 million.

Since Gildan took over, loyal American Apparel shoppers have scolded the brand for lacking the same quality as it did in previous eras. The brand was also criticized for not adhering to its "Made in USA" motto, as many of the items under Gildan were manufactured in China, Central America, and Bangladesh. Consumers can find American Apparel on its e-commerce website and on various online retailers and some physical stores like Amazon, ASOS, and Walmart.

After being fired from American Apparel, Dov attempted to fight the allegations against him. According to Cosmopolitan, he filed a defamation lawsuit against Standard General, American Apparel’s parent company, followed by a second complaint of fraud and conspiracy a month later, which sought $100 million in damages.

American Apparel fought back with by releasing court documents of the fashion businessman's alleged misconduct, which showed that he allegedly made racial slurs to some of his employees and sent others sexually charged text messages. Still, he and his team denied all allegations, although his legal attempts were unsuccessful.

In 2016, Dov attempted to buy back American Apparel, but also failed to do so. He later launched Los Angeles Apparel, a line that followed the same theme as his former company and supplied wholesale clothing to companies with all garments made in the U.S. He made headlines again in 2023 after he printed Kanye West's controversial "White Lives Matter" shirts for his Yeezy brand before reportedly distancing himself from the rapper following Ye's anti-semetic comments.