| Jan. 1, 1997 |
A history of American Apparel |
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A look back at American Apparel's controversies, financial hardships and the recent ouster of founder Dov Charney and its aftermath. |
Passers-by walk past an American Apparel store in the Shadyside neighborhood of Pittsburgh.
(Keith Srakocic / Associated Press)
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| Dec. 31, 1997 |
American Apparel sets up shop in Los Angeles |
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Dov Charney sets up shop in Los Angeles, consolidating his operations. Earlier, as a student at Choate Rosemary Hall, a Connecticut boarding school, Charney went into business selling silk-screened T-shirts. Then at Tufts University near Boston, Charney sold T-shirts wholesale out of his dorm room before dropping out in his junior year to sell shirts full time in South Carolina. |
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| Jan. 12, 2003 |
Leading the garment industry in wages, dignity |
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Six years after moving American Apparel to Los Angeles, Charney challenges the labor standards of the garment industry by paying higher wages and benefits to his workers. Charney likens himself to Christopher Columbus, saying his American Apparel is "the first company in the state committed to removing exploitation" from garment making. |
American Apparel's Dov Charney has been celebrated for offering his employees the opportunity to earn better than minimum wages.
(Beatrice de Gea / Los Angeles Times)
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| Nov. 9, 2005 |
Sexual harassment suit dismissed |
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A federal judge dismisses one of three sexual harassment lawsuits pending against American Apparel and Dov Charney. The plaintiff in the dismissed case alleged she was fired after complaining that Charney created a hostile work environment. |
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| Dec. 20, 2006 |
Becoming a global American Apparel |
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After a $280-million stock deal with Endeavor Acquisition Corp., American Apparel opens shops in numerous countries in Europe, Asia and Latin America. After the acquisition, American Apparel becomes a public company.
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The American Apparel factory in downtown Los Angeles is emblazoned with the motto "Legalize LA." The company is known for socially conscious manufacturing and sexy advertising.
(David McNew / Getty Images)
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| Aug. 15, 2008 |
Enjoying success in a weakened economy |
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American Apparel enjoys a 39% increase in sales in the second quarter of 2008 and says it is accelerating its expansion plans despite the weak economy. |
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| March 14, 2009 |
American Apparel receives cash infusion to avoid bankruptcy |
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American Apparel receives an $80-million infusion from Lion Capital, a British investment firm, to pay off debt. Financial concerns had almost led the company to file for bankruptcy, according to an American Apparel executive. |
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| May 18, 2009 |
American Apparel settles copyright case with Woody Allen |
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American Apparel reaches a $5-million settlement just as the trial between American Apparel and Hollywood director Woody Allen is about to get underway. Allen sued after the company used unauthorized images of him from the movie "Annie Hall" in its advertisements. |
Woody Allen received $5 million from American Apparel after the company used unauthorized images of him for its advertisements.
(Jennifer S. Altman / Los Angeles Times)
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| July 2, 2009 |
Federal inspection exposes unauthorized workers |
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American Apparel, known for its outspoken support for immigration, announces that the federal government found that about 1,600 of its workers do not appear to be authorized to work in the U.S. About 200 more had been found to have discrepancies in their employment records. |
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| Sept. 3, 2009 |
American Apparel terminates 1,500 unauthorized workers |
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In the wake of a government inspection that discovered about 1,600 of its workers did not appear to be authorized to work in the U.S., American Apparel terminates about 1,500 workers. |
More than 1,500 workers at American Apparel garment shops faced termination after a government inspection uncovered their unauthorized work status.
(Mel Melcon / Los Angeles Times)
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| June 25, 2010 |
Billionaire investor buys 6% stake, rejuvenates struggling company |
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Los Angeles-based billionaire investor Ron Burkle acquires a 6% stake in American Apparel, worth about $6 million. It is much-needed capital for American Apparel, which since 2009 has been saddled by debt and weak sales. |
Ron Burkle acquired 4.3 million American Apparel shares because he thought they were undervalued.
(Chester Higgins Jr. / New York Times)
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| Aug. 19, 2010 |
American Apparel's shares plummet 21% |
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After warning earlier in the week that there was "substantial doubt that the company will be able to continue as a going concern," American Apparel sees its stock fall 21.3% on Aug. 19, ending at an all-time low of 81 cents. |
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| Oct. 9, 2010 |
Tom Casey becomes acting president |
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American Apparel names former Blockbuster Inc. executive Tom Casey as its acting president to help redirect the company, which appeared to be on the brink of bankruptcy during the summer. |
Tom Casey became the acting president of American Apparel in hopes of restructuring the beleaguered company.
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| March 23, 2011 |
Former American Apparel employee accuses Charney of sexual assault |
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Dov Charney is sued by a former employee who says he sexually assaulted her "during what she believed to be a hiring interview" at his home. |
Dov Charney was the subject of several sexual harassment or sexual assault lawsuits during his time as American Apparel CEO.
(Keith Bedford / Bloomberg)
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| April 23, 2011 |
American Apparel receives another lifeline |
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A group of Canadian investors agrees to provide up to $45 million to help American Apparel stave off a potential bankruptcy filing. In 2010, American Apparel lost $86 million. |
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| July 6, 2011 |
Two board members resign after disagreements on filing Chapter 11 bankruptcy |
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Mark Samson and Mark Thornton leave the board after disagreeing with the company's decision not to file for Chapter 11 bankruptcy protection in the spring. Charney said filing for bankruptcy "would have been inappropriate for our business." |
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| May 11, 2012 |
Sales improve but American Apparel still struggles |
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Despite a 14% increase in sales, American Apparel reports a $7.9-million loss in its first quarter of 2012. |
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| March 18, 2014 |
American Apparel fights to stay on NYSE |
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On Feb. 28, the New York Stock Exchange said American Apparel had failed to reach the exchange’s listing standards. Buried in negotiations over financing, American Apparel says it will delay its annual financial report. |
The New York Stock Exchange threatened to delist American Apparel's stock after the clothing company failed to meet its standards.
(Jin Lee / Bloomberg)
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| June 18, 2014 |
Board ousts Charney as CEO |
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Dov Charney is ousted by the company's board of directors, who say the action "grew out of an ongoing investigation into alleged misconduct." In 2013, American Apparel reported a net loss of $106.3 million, much larger than the $37.3-million loss in 2012. |
Dov Charney was ousted by the board of American Apparel, the company he founded in 1989.
(Gary Friedman / Los Angeles Times)
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| June 28, 2014 |
American Apparel defends against Charney takeover |
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Charney begins preparing for a "proxy war" by soliciting the right to vote other stockholders' shares in support of his position. He spent $19.6 million to buy an additional 27.4 million American Apparel shares the previous week and sought to expand the number of board members and amend company bylaws at a special shareholder meeting. |
Dov Charney attempted to take back the company he founded after being ousted by the American Apparel board on June 18.
(Gary Friedman / Los Angeles Times)
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| July 10, 2014 |
Charney, American Apparel settle on a truce |
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After attempts to retake American Apparel, ousted CEO and founder Dov Charney settles on a truce and will now be a paid consultant. Charney, however, will have no supervisory authority over the Los Angeles retailer's workers and is forbidden from accessing the company's computer systems. |
Dov Charney reached a truce after being ousted by the American Apparel board on June 18.
(Gary Friedman / Los Angeles Times)
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| July 23, 2014 |
American Apparel appoints new directors, including first woman |
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As part of a deal it brokered with hedge fund Standard General, which earlier in the month provided a $25-million lifeline, American Apparel appoints four new directors to its board. One of them is Colleen Brown, the first female director at the clothing company known for its racy advertisements. |
American Apparel has built a reputation in the fashion industry for its racy, sexy advertisements.
(Getty Images)
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| Dec. 16, 2014 |
American Apparel fires CEO Dov Charney, hires replacement |
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American Apparel Inc. fired Chief Executive Dov Charney following allegations of misconduct and violations of company policy. The board previously suspended Charney in mid-June pending an investigation into alleged actions including misuse of company apartments and allowing a blogger to post nude photos of a woman suing American Apparel. The internal investigation by FTI consulting “determined that it would not be appropriate for Mr. Charney to be reinstated as CEO or an officer or employee of the company.” The company announced Paula Schneider, a long time industry executive, as the new CEO. |
(Los Angeles Times/ Handout)
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