Gildan Says American Apparel Will Keep a USA-Made Line as Production Moves Offshore

Gildan Activewear said in spring 2017 that it would keep a Made in USA collection under the American Apparel brand, Retail Dive reported May 8, 2017. Much of the line was moving to Gildan’s factories outside the USA.

The first labels from Honduras and Nicaragua

Gildan, based in Canada, bought American Apparel at a bankruptcy auction for $88 million. In early April 2017, Fortune, citing the New York Post, reported that the company was making shirts in Honduras and Nicaragua. Gildan confirmed that “Made in Honduras” and “Made in Nicaragua” labels would appear that summer.

That ended the brand’s long run of making its clothes only in the USA, mostly in Los Angeles.

A two-tier plan

Gildan spokesman Garry Bell told Retail Dive: “Gildan is committed to maintaining a Made in the USA collection of products for the core American Apparel customer who demands it.” Lower-priced items would come from Gildan’s existing overseas plants.

Retail Dive, citing Bloomberg, reported that the USA-made items could cost as much as 25% more. CEO Glenn Chamandy said USA manufacturing matters to some USA consumers but not to overseas shoppers. Gildan also planned a Los Angeles office for merchandising and marketing, staffed with former American Apparel employees.

For what came next, see our report on the August 2017 relaunch.

FAQ

Who owned American Apparel in 2017?

Gildan Activewear, which bought it at auction for $88 million.

Where did production move?

Much of it moved to Gildan plants in Honduras and Nicaragua.

Did a USA-made line remain?

Yes. Gildan said it would keep a Made in USA collection.