Los Angeles Apparel was founded by Dov Charney in 2016 in Los Angeles, California after being forced out of American Apparel by its board amid allegations of mismanagement and sexual harassment of employees. Charney launched Los Angeles Apparel as a wholesale business, similar to American Apparel's origins in 1989. Los Angeles Apparel consists of about 350 employees, including many former American Apparel workers. About 90 percent of the factory's machinery once belonged to American Apparel. According to Bloomberg, Charney bought fabric, computers, sewing machines, and other equipments from American Apparel in the bankruptcy sale. In late 2016, Cincinnati based TSC Apparel made a multimillion-dollar business deal with Los Angeles Apparel, selling the startup's clothes to concert producer Live Nation Entertainment and screen printers who previously purchased American Apparel. In July 2020, the Los Angeles County Department of Public Health ordered the temporary closure of the Los Angeles Apparel factory after over 300 employees tested positive and 4 died of COVID-19. In response, Charney reportedly told CNN that testing employees would be key to preventing spread of the virus, stating that in hindsight, he "would have fought for more testing earlier." He also suggested that a lack of testing and contact tracing by the county may have contributed to the elevated number of infections within Los Angeles. On July 23rd, the L.A. County Health Department announced that Los Angeles Apparel would reopen and resume operations. The company said that they were working closely with the health department and would be "pursuing the highest safety standards for our workers and will continue to strive to make improvements."
Production
Los Angeles Apparel was started as wholesale business. The company is upfront about the fact that its clothing and business model is similar to that of American Apparel. Los Angeles Apparel is a manufacturer and distributor of apparel to screen printers, apparel companies, and boutiques. The company focuses on production of T-shirts, sweatshirts, cotton bodysuits and swimwear. The company is a vertically integrated manufacturer with knitting and dyeing done in Los Angeles. Los Angeles Apparel's factory spreads over the area of 100,000 square foot with current capacity of 140,000 units per week. The company is devoted to keeping production domestic and employing garment workers in Los Angeles.
Los Angeles Apparel supports and strives for fair wage labor practices. The company's workers earn wage of $15~20 per hour. The workers at Los Angeles Apparel own equity in the company making it employee owned. The company focuses on local manufacturing and attempts to employ workers in the Los Angeles area.
Vertical integration
Los Angeles Apparel is a vertically integrated company, expanding its business operations into different steps on the same production path. The company has total control over the supply chain from manufacturing to end sales. Los Angeles Apparel purchases textile and yarn products made in USA, supporting local manufacturing. More than half of yarn utilization is acquired from domestic sources.
Los Angeles Apparel integrates organic cotton and reclaimed cotton into their supply chain. The company plans to recycle almost 100 percent of their waste by 2018.
