American Apparel: The dirty secrets of the most subversive company of the ’00s
Upon visiting the website of clothing company American Apparel, visitors are immediately greeted with the brand’s commitment to ethical and sustainable practices.
“We have been redefining and building the future of responsible apparel manufacturing since our inception,” proclaims the vibrant, multiracial, youthful, and modest brand. It aims to appeal to a socially conscious young audience concerned with environmental sustainability, fair working conditions, and opportunities for young creatives. This is a stark contrast to the provocative, sexy young models who once posed semi-nude in colorful, suggestive T-shirts, embodying the unstoppable energy of the 90s youth.
Years ago, American Apparel was another company selling the American dream, and its influence quickly spread across the globe. The bold Helvetica letters of its logo once screamed, “I stand out because I wear it, and I wear it because I’m cool,” even before ‘cool’ became a buzzword. “American Apparel is proud to offer high-quality, ethically made apparel, made entirely in the USA. Known for the soft, fine jersey cotton it uses, our clothes appeal to those seeking ultimate comfort and a fashionable fit,” claims its website, reminiscent of a high school yearbook. However, this is another American dream that has descended into a quagmire of sex scandals, mismanagement, and unacceptable behavior.
Testimonies from former employees, archival footage, and previously unseen material help us understand how American Apparel transitioned from a symbol of modernity and freshness to a classic example of a toxic work environment hidden behind a façade.
It’s understandable that the brand would want to distance itself from its past bankruptcy, legal issues, and scandals surrounding its founder, Canadian businessman Dov Charney, who built one of the largest apparel businesses in North America. The company would undoubtedly like to erase any traces of its decline. However, despite their efforts to maintain an image of continuity, everything has changed. Even the manufacturing of the clothes has shifted to Central America, primarily in Honduras and Nicaragua.
The Netflix documentary “Trainwreck: The Cult of American Apparel” is part of the same series as “White Hot: The Rise & Fall of Abercrombie & Fitch”. Both documentaries delve into the inner workings of companies that significantly influenced fashion trends. “Trainwreck” also presents a portrait of Dov Charney, an innovative yet controversial businessman.
Founded in 1989 by Dov Charney, American Apparel relocated to Los Angeles in 1997, specifically to the historic Alameda Square complex downtown. The company quickly became a phenomenon, one of the fastest-growing in the United States, with revenues exceeding $211 million in 2005, just a year before it went public.
American Apparel was a rarity among clothing brands, not only for its “Made in USA” products but also for its distinctive approach to advertising. The brand was known for its provocative campaigns, often filled with sexual innuendo, reflecting an era that sought freedom and novel ways to express sexuality after the AIDS crisis. The brainchild of its CEO, these controversial advertisements set the company apart.
The brand’s vision of America, as portrayed in its campaigns, was groundbreaking for the fashion industry. Rather than using professional models, American Apparel featured everyday people who had submitted their photos directly to the company’s website. These individuals, complete with their unique imperfections, became the faces of the brand.
American Apparel’s edgy approach garnered attention from various quarters. The adult entertainment magazine, “Adult Video: News,” lauded the brand’s website as “one of the best sites for softcore out there.” In 2007, Outlaw Consulting, a research firm studying the habits of 21 to 27-year-olds, ranked American Apparel as the 8th most trusted brand, ahead of H&M and Levi’s. By 2008, market research firm the Intelligence Group had ranked the brand as the second top trend-setting brand, just behind Nike.
The brand’s hiring practices also drew attention. American Apparel’s CEO, Charney, stated that employees were hired for their cultural awareness and fashion sense rather than their resumes. However, the company faced criticism for allegedly hiring based on personal style and appearance.
Charney attributed the brand’s creativity and rapid growth to its unconventional corporate culture, emphasizing that the company’s openness about sexuality was because “young people like honesty.” However, employees featured in a documentary about the company claimed that Charney encouraged inappropriate behavior in the workplace and routinely crossed boundaries. New hires were reportedly given a welcome gift bag containing a vibrator, a copy of “The 48 Laws of Power,” a Leica camera, and a Blackberry to ensure they were always available.
According to these employees, it wasn’t unusual to see co-workers kissing in the factory hallways. There were even instances of Charney walking naked in front of two female employees. American Apparel, once renowned for its provocative advertisements, saw its ranks swell with eager employees, drawn in by the magnetic allure of a boss who was unlike any other.
The documentary uncovers the stark contradictions of a brand that outwardly championed inclusivity yet faced severe criticism for its internal practices. Through interviews with former employees, archival material, and never-before-seen footage, the film explores American Apparel’s transition from a beacon of modernity and innovation to a textbook example of a toxic workplace, hidden behind a facade that starkly contradicted the progressive image and ethical practices it projected.
The documentary opens with a jarring scene: Charney, the company’s founder, calls an employee at midnight, shouts “I hate you! I hate you!” and promptly hangs up. “That was a typical day at American Apparel,” the employee recalls, revealing that he sometimes had to work for 36 hours straight. This example illustrates Charney’s expectation that employees, despite earning more than minimum wage, should be available around the clock.
Another employee recounts living in Charney’s home, a chance he couldn’t pass up to reside in such a luxurious abode. He likens it to a “Playboy mansion for hipsters,” constantly filled with young women who were either passing through or living there. Charney has faced numerous accusations of sexual harassment. However, since many of these women had signed agreements not to disparage Charney or American Apparel, they could not participate in the documentary. Only one voice speaks out, claiming that Charney invited barely-legal individuals into his bedroom and frequently paraded around in just a towel in front of his employees.
Charney justified this “intimacy” as his way of fostering a familial atmosphere among his staff, ensuring their constant availability and productivity. A banner outside the Los Angeles factory proclaimed: “American Apparel is an industrial revolution.” And in many ways, it was. However, Charney’s boastful admissions of sleeping with employees, masturbating in front of staff, and receiving oral sex from an employee, ultimately led to the company’s downfall. Four former models filed seven lawsuits against the company, all alleging sexual harassment. Despite facing multiple lawsuits, American Apparel has managed to settle or have all cases dismissed without incurring any financial liability. The company has contended that these lawsuits were simply attempts at extorting money.
American Apparel found itself in a precarious situation at the start of 2012, following a public outcry. Despite founder and CEO, Charney, insisting on his innocence, his actions put the company he created in jeopardy. The board of directors removed Charney from his dual roles in June 2014, following negative reports about the company’s financial health and clear signs of Charney’s mismanagement.
By September 2015, American Apparel was teetering on the brink of bankruptcy, burdened with a $15.4 million debt to repay. Two years later, the company was bought for $88 million by Canadian sportswear manufacturer, Gildan Activewear.
Charney’s “success story” did not end on a high note. Young viewers of the documentary will see a glimpse of a corporate world that no longer exists and behaviors that are inconceivable in today’s society. At least, not openly.
Trainwreck: The Cult of American Apparel | Official Trailer | Netflix
