Gildan Activewear has confirmed that American Apparel is manufacturing apparels outside of the US for the first time in its 28-year history, losing its ground on ‘Made in USA’ ethics. Once claimed to be the largest domestic apparel maker of the US, the fashion retailer is now producing shirts in Honduras and Nicaragua.
It may be mentioned here that Gildan, in January, bought American Apparel at auction for US $ 88 million.
According to Gildan, the company operates fabric and sewing factories in Central America and apparels manufactured here are slated for its wholesale operations because the majority of customers are corporate customers who are more price sensitive than some retail customers. Thus, the company hasn’t yet decided where to make its retail merchandise.
Explaining about where to operate retail operations, Gildan spokesperson, Garry Bell, commented, “We will be evaluating many factors for retail operations, including the specific preferences for Made in USA, as we assess the opportunities related to bringing this brand to consumers over the coming weeks,” adding, “However, the whole new ‘Made in Honduras’ and ‘Made in Nicaragua’ labels will begin appearing on clothes this summer.”
Most of the remaining 72 stores of the company are closing this month, according to the American Apparel website. The stores and e-commerce site are being operated by American Apparel management now, but the e-commerce will switch over to Gildan.