American Apparel about to go bankrupt? Oh crap.
I’m one of those people that when I find something I really like to wear, I’m pretty loyal as a customer.
For example a year and a half or so ago I tried out a pair of Hard Yakka socks from Kmart. After trialling them for a month as a versatile casual sock that was black and could also be warn to work, I went back to Kmart and bought 12 pairs.
Enough to last a few years.
I’ve still got these socks and to date have only had one get destroyed by the washing machine. If they’re still available I’m sure I’ll wind up buying another whole bunch of them. I like the fact that I don’t have to worry about matching socks and being black they can be worn for any occasion. They’re also ridiculously robust and long lasting.
In the tshirt department I’ve pretty much done the same thing with American Apparel. This morning when I read that the company was on the verge of bankruptcy, I felt a cold shiver run down the base of my spine.
I’ve had a love hate relationship with American Apparel ever since I bought my first Fine Jersey short sleeve tshirt a couple of years ago. I absolutely love this particular tshirt style. It fits me like a glove, they last forever and they pretty much go with anything.
Last year however when I set about wanting to bulk order enough American Apparel tshirts to get me through a week I was majorly disappointed outright pissed off with their regional online marketing strategy.
As far as American Apparel are concerned their Australian customers are morons who would happily pay more then double the price for their tshirts.
Long story short a reader left a comment pointing me to eBay seller Tuffy McPuggles’ store and I wound up purchasing my Fine Jersey tshirts at less then half the price American Apparel’s Australian online store wanted for them.
I got my favourite fitting tshirts at a great price but still to this day have no idea how it winds up cheaper to buy from a third party distributor in the US over the Australian arm of American Apparel itself. Perhaps experiences like mine go some way to explain why the company is on the verge of bankruptcy.
DOV Charney, the fast-talking CEO of American Apparel, is scrambling to keep his beloved company out of bankruptcy.
Charney – whose libertine lifestyle and racy marketing campaigns kept the clothing chain controversial and in the minds of its young shoppers – had to give up a large equity stake in the operation to a private equity firm that rode to his rescue, the New York Post reported.
Prior to reading the news article featuring Charney I had no idea who he is. After reading the article nor do I care.
I heard about American Apparel through word of mouth. Someone mentioned they made great fitting tshirts and after tracking down a retailer (through no help of American Apparel itself) in Melbourne I went down and purchased two tshirts in my size to try out.
I wasn’t suckered in by some racy marketing campaign or the libertine lifestyle of American Apparel’s CEO. In fact I have no idea about either of these things. If this is where the company’s profits are being spent then some serious new thinking is required at the company.
Guys, your core market are customers like me. Customers who, even though they know they are getting shafted for being Australian, will still go out and buy your product because we love them. You make a great tshirt so how about as a company you stick to doing what you do best.
Your customers clearly don’t care about libertine lifestyles and racy marketing campaigns, or you wouldn’t be facing bankruptcy.
Honestly I have no idea what I’d do if American Apparel folded and I needed to restock my tshirts. Not that I’ve looked but to date I haven’t really seen anyone else selling a great fitting plain color tee that’s accessible and reasonably priced.
Hopefully this Charney guy gets his arse into gear and stops stuffing around. Otherwise I foresee a massive stock up of Fine Jersey tshirts to get me through the next decade or so.
March 29th, 2010 at 1:38 pm Frank(Quote)
American Apparel ran into a little trouble last year when US Immigration and Customs Enforcement charged that 1/3 or their factory employees were illegal immigrants. Wonder if that had anything to do with their current troubles? And I’m a big fan of their t-shirts, too; own several in fact.
March 29th, 2010 at 2:17 pm ozsoapbox(Quote)
Yeah I read about that. From memory they were employing illegals but paying them fairly, kind of wonder why they couldn’t do an employment visa sponsorship thing similar to what is available in Australia.
Regardless it’s not immigrations fault and again comes back to poor management of American Apparel for not complying with state law. Publicity wise it seems like Charney is trying to be a mini Richard Branson or something but without the financial firepower to back it up.
Either way I don’t care and just hope they stay in business for the clothes. I’ve been pretty unimpressed with Taiwan’s jacket offerings and need something to wear on a scooter. Writing this article last night I inevitably flicked over to American Apparel’s website and found their Poplin Thermal-Lined Day Jacket which looks perfect in the black.
Being American Apparel I know it’s going to fit me well and the price is pretty good at $50US. I’m really going to miss them if they go under.
March 30th, 2010 at 1:43 am Anon(Quote)
Serously OZ, I know what you mean, when Dangerfield came out with a nice plain black cotton t-shirt (as opposed to the 9000 goth-esque/plad/bleh designs) I purchased 3.
When I found out about AA I ended up purchasing a truck-full of their t-shirts.
But Yay! now I’ll be forced to shop at Gordiano where the shirts are too short (read:exposed midriff) or David Jones/Industrie (read:overpriced and fit like a tent)
I might be placing a VERY large order with them soon if they show signs of going under.
April 9th, 2010 at 8:35 am Anon(Quote)
American Apparel clothing is overpriced (rapidly increasing, to cover up bad management mentioned above), fabric stretches easily, fades constantly and is often badly sewn (which in no way are the machinists to blame, its more the fact that they are over worked and seriously underpaid for the work they would be required to put in, to keep their jobs.
April 9th, 2010 at 2:13 pm ozsoapbox(Quote)
I’m going to have to disagree with you there. The Fine Jersey tshirts I bought a few years back now are still going strong and this is with weekly wear and washing. Sure they’re a bit faded and the collars a tad stretched but the tshirts still fit great and have not torn or had the sewing come undone.
Don’t know if the quality of their tshirts has dropped recently but the batch I bought late last year are still going strong with no complaints.
I can find plenty of faults with the management and running of American Apparel but I’ve never had a complaint about the tshirts, that’s mostly why I feel so strongly about the company going bankrupt.
April 13th, 2010 at 2:07 pm Nath(Quote)
I have though American Apparel’s Australian prices were a ripoff for a long time! I am looking at that Tuffy Puggles thing now, it looks pretty good.
What about the prints though? Can you get them blank? (I would feel like a total muppet walking around with those logos all over my clothes!)
April 13th, 2010 at 2:09 pm ozsoapbox(Quote)
Hey there Nath, you sound like me and avoid prints on your tshirts at all costs.
Have a look at the ‘Fine Jersey’ tshirt multipacks. They are awesome fitting and come in a whole host of plain colors. When I bought my multipack from Tuffy they even let you choose what colors you wanted the six tshirts to come in, you just had to write it out in checkout.
Comparitvely American Apparel only let you buy larger multipacks in one color.
April 14th, 2010 at 2:48 pm Nath(Quote)
Thanks for the info. I think I will put in an order… But, I’m still not clear whether I can get it without their lame prints? If you write that as a request in the checkout will they not print on them?
April 14th, 2010 at 3:09 pm ozsoapbox(Quote)
What prints are you referring to? American Apparel do a series of tshirts, the ones with prints ship with prints. The Fine Jerseys are available as multipacks without any prints.
http://stores.ebay.com/Tuffy-McPuggles__W0QQ_fsubZ313047010QQ_scZ1QQ_sopZ10
This page and then have a look at the items marked ’6 Pack 2001 American Apparel Jersey T Shirt ANY CLR/SZ’. There is also a 3 pack available.
I bought this multipack last year, you can specify whatever color combinations you want in the order too which is something American Apparel don’t let you do.
April 14th, 2010 at 3:40 pm Nath(Quote)
It’s the TMCP print on the bottom left hand corner of the T. You can see it on the eBay page. Their page says that they can’t sell blank, but I’m wondering if they will send it blank of it’s on the checkout notes?
That’s cool about the colours though. Crazy AA never thought of that!
April 14th, 2010 at 3:53 pm ozsoapbox(Quote)
Oh you’ve got to be kidding me!
Sorry mate I didn’t realise they’d changed their stock since I last bought off there. The whole freaking point I loved American Apparel’s tshirts was that they didn’t have any stupid prints on them in the first place. What a crock of shit they’re forcing resellers to offer the tshirts with a print just because they offer them cheaper then the bloody American Apparel website itself.
Seriously who the f… wants to wear black tshirts with freaking bold white print tags on them?!
I guess you can try contact them and see what they say. Catch 22 though, if they do it they’re providing great customer service but most likely voiding their distribution agreement with AA. Their items page does say ‘no exceptions’ though.
Not being able to buy American Apparel’s tshirts blank anywhere other their own overpriced website might be the final straw for me. As much as I love the Fine Jersey tshirt I’m not paying stupid prices for a blank tshirt when they force other companies to put shitty prints on the tshirts.
(and the printed tshirts are still cheaper then American Apparel’s blank tshirts!)
April 14th, 2010 at 4:15 pm Nath(Quote)
Yeah. Damn! I will give it a try anyways. Cheers,
April 14th, 2010 at 4:16 pm ozsoapbox(Quote)
These guys seem to still be offering blank tshirts on the proviso you tell them you intend to get them screen printed yourself.
http://yque.com/blanshirbyam.html
They call the tshirts ‘American standard’ though and not Fine Jersey. From the picture it looks like Fine Jersey but I’m not 100% if this is a cheaper version. Might be worth contacting them too.
I punched in 10 mens tshirts in the black and got a total of $55US. They seem to ship overseas but I didn’t go to the next screen so not sure what shipping is.
Thank christ I put that order in last year. I won’t be shopping for tshirts anytime soon.
April 15th, 2010 at 11:20 pm ozsoapbox(Quote)
After doing some more hunting around, I’ve found that Blank Style are offering the proper American Apparel Fine Jerseys at a decent enough price. They appear to be plain and unprinted.
Bulk prices are currently:
Price (Quantity: 1-5): $8.14
Price (Quantity: 6-11): $6.92
Price (Quantity: 12+): $5.90
Price (Quantity: 60+): $5.29
Not too sure on shipping as it’s calculated after you make an order. Still, they are only tshirts and even with shipping added can’t be anywhere near as expensive as ordering from the official American Apparel site.
April 21st, 2010 at 10:28 pm PSI Screen Printing(Quote)
Hey Guys,
We’d be happy to supply them for you. Just give us a call 1300 853 474.
Just make a list of what you want and we will include them in on our next order.
April 22nd, 2010 at 12:39 pm ozsoapbox(Quote)
Hey Joel, any indication of prices?
Also what’s the shipping like to Taiwan?
April 23rd, 2010 at 9:19 pm PSI Screenprinting(Quote)
For under 50 we do them for $12.95 ea…we might be able to work something out. Email me if you like for more info.
April 24th, 2010 at 3:55 am ozsoapbox(Quote)
Sounds good. I’m right for stock now but if I need them in the future I might look you guys up. Cheers for the info.
August 19th, 2010 at
[...] in March this year American Apparel announced that they were on the verge of bankruptcy. For me the reason for this bankruptcy was clear. By [...]
August 25th, 2010 at 1:12 pm Quantum(Quote)
Oh well yet another casualty of the FED. When will people learn that the IRS, the fed, don’t want businesses to succeed in the U.S.A. unless you can be used for espionage or military!
The federal gov’t puts the IRS there to destroy businesses when they get big. The gov’t & IRS are run by big banks over in London who don’t want the U.S. to have a strong mnfg/industry base! When someone gets big & threatens to help the U.S. market they sucker the company into the stock market then come down on them like a ton of bricks!
They get of all people responsible for making them successful, strip the company down & then move the mnfg base to China or India- Period!! That’s it in a nutshell!! Yep!
The current CEO Charney, despite his little essentricities was the engine who made AA the all U.S.A. mnfg/industry company. Now that he’s on the stock market the FED has leverage to totally destroy AA & Charney through petty little issues like (illegal workers!) Then they’ll strip him of everything, kick him out & send his mnfg base to China and have the product made literally through slavery!!
mlm our gov’t- the tyrannical bastards they are! When will citizens wake up?!!! It’s pathetic!
August 25th, 2010 at 3:47 pm ozsoapbox(Quote)
As an overseas customer I was getting ripped off before any of the illegal worker stuff happened. This to me is a greater ignorance then trying to blame this one on the US government.
August 29th, 2010 at 6:24 am ragslinger(Quote)
I am a retailer who carried American Apparel 2×1 boy beaters (tank tops) in my shop 10 years ago. At the time they were about $2.75 (us dollars) wholesale. When the first American Apparel stores opened and I saw the same tank tops retailing for $18, I thought not bad Dove, good mark up, but what a rip off.
Sorry guys, while some of their product quality is fine, some of it is not so fine and ALL of it is overpriced. This is even the consensus among many of the die hard American Apparel lovers I know.
Let’s face it, they make basics, and they’re expensive. In the US they have done an excellent job branding and marketing their product, but it isn’t based on quality. People are not buying it because it’s an amazing product. They’re buying it because for a while no one else was filling the void of good trendy basics.
Another look into why they might not be doing so well is to look at how poorly their retail stores are run. The one in my city is managed by early 20-somethings who continually give discounts and product to their friends (stealing). There are always at least three people working in a pretty small store and one of them is always outside smoking. Literally every time I walk by (my favorite restaurant happens to be right above them) one or two employees are outside smoking and looking totally disinterested in working.
If you walk into the store, rarely are you greeted. Typically employees stand around talking to each other. You have to interupt them if you want help. I doubt there is any sort of training program, their customer service blows.
My business is about a mile from American Apparel. When they first opened I would have someone come in at least once a week a say with something negative to say about their experience shopping there. All of these people liked the clothes, and were even willing to pay a little extra for them, but really did not want to go back. I find that most people I know go there because they “have” to get a certain basic, not because they’re looking forward to shopping there.
Lastly, American Apparel used to be one of the primary suppliers for a lot of printed t-shirt companies. Everyone used them for their blanks. Once American opened their bricks & mortar stores, and really pushed their on-line sales, they cut off a lot of product to other wholesalers who bought their product to use to print on, or smaller shops who sold their product outright. Furthermore, there is more competition now. Many other companies sell blanks to wholesalers at the same or better pricing. That goes for retail too. There are plenty of other companies offering great priced garments to the general public at comprable prices.
Personally, I like the style of American apparel. I think they did a great job with their ad campaigns. They’ve captured the 18-35 demographic (men & women). Unfortunately it seems to be a poorly run company. And with competition for great basics on the rise, they need to pull it together.
August 30th, 2010 at 12:20 pm ozsoapbox(Quote)
I don’t have any experience with shopping at a retail American Apparel store personaly, so thanks for sharing your experience ragslinger.
Definitely sounds like a poorly managed company with great products. I must say though that whilst American Apparel’s basics are just that, the quality of them has impressed me which kept me coming back. I’ve got fine jersey tshirts that are 3-4 years old now that I still wear and fit great.
The main thing I like about AA is the fit, I’ve yet to wear a similar fitting tshirt in the plain colors (I know they exist – just hard to find as everyone wants to print some wanky stuff on their tshirts these days).
August 18th, 2011 at 2:36 am Andy Screenplay(Quote)
Yeah yeah, hindsight is twenty twenty vision, but it looks as though the problems with American Apparel have not eventuated. At least not for the time being.
Fingers crossed though, they are a quality garment stockist!
August 18th, 2011 at 9:28 am ozsoapbox(Quote)
I don’t think it’s a matter of crossing our fingers and hoping for the best so much as this Dov Charney fellow pulling his finger out and running American Apparel properly.