LOS ANGELES — American Apparel, the maker of hip clothing and accessories that went through bankruptcy reorganization, is laying off workers, a consultant to its union organizers said Tuesday.
American Apparel has since notified about 500 workers out of the 4,300 it employs in Southern California that they are subject to layoff, says Nativo Lopez, a longtime activist who describes himself as unofficial adviser to the General Brotherhood of Workers of American Apparel. “The first notices of layoffs began last Wednesday,” Lopez says.
There was no immediate comment from a company spokesman.
Los Angeles-based American Apparel has been known for its edgy, sexy advertising campaigns and its devotion to American manufacturing, took steps to cut its debt while undergoing its bankruptcy reorganization. A judge approved its restructuring program in January. Several hedge funds, Standard General and Monarch Capital, added capital and took control of American Apparel during bankruptcy proceedings.
The company is also known for a scandal: In 2014, its CEO, Dov Charney, was fired in 2014 amid allegations of sexual misconduct. Charney tried to wrest back control of the company, but was rebuffed.
Lopez says the layoffs occurred at several American Apparel sites, including ones in South Gate and Garden Grove, Calif., besides Los Angeles. He says they did not appear to target union sympathizers or supporters. Still, he acknowledged job jitters could make a union vote harder.
“It’s a complete fear factor,” Lopez says.
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