Charney began selling t-shirts under the American Apparel name in 1989. In 1990, he dropped out of
Tufts University, borrowed $10,000 from his parents and established American Apparel in South Carolina. Over the next several years, he spent time learning about manufacturing and wholesale before moving to Los Angeles in the mid-'90s. By 1997, Charney had moved all manufacturing into a factory located in downtown Los Angeles. American Apparel products were marketed towards "young metropolitan adults." The company had about $12 million in sales by 2001. In 2003, Charney opened the first store in L.A.'s
Echo Park neighborhood, followed by one each in New York and Montreal. Within two years, the company had expanded to Europe and opened 65 new stores. By 2006, there were 140 total stores. In 2009, it expanded to 281 total retail locations, making it "the fastest retail roll-out in American history."
Ad campaigns American Apparel under Charney's leadership was known for its simple and provocative ads, which rarely used professional models and whom were often chosen personally by Charney from local hangouts and stores. He shot many of the advertisements himself and was criticized for featuring models in sexually provocative poses. The campaigns were also lauded for honesty and lack of
airbrushing. In 2012, the company made headlines with an ad campaign featuring 62-year-old model Jacky O'Shaughnessy. American Apparel again stirred controversy in 2014 when their
Lower East Side store displayed mannequins with pubic hair in the window. The company told
Elle Magazine:
Activism Legalize LA Legalize LA was an immigration reform campaign conceived by Charney and promoted by American Apparel beginning in 2004. The campaign featured billboards and full-page ads, as well as t-shirts with the words "Legalize LA." Proceeds from the sale of the shirts were donated to immigration reform advocacy groups.
Legalize Gay In November 2008, after the passing of Proposition 8, which banned same-sex marriages in California, Dov Charney and American Apparel created "Legalize Gay"
T-shirts to hand out to protesters at rallies. The positive reaction led American Apparel to sell the same shirts in stores and online.
Factory conditions In an interview with
Vice.tv, Charney spoke out against the poor treatment of fashion workers in developing countries and refers to the practices as "slave labor" and "death trap manufacturing." Charney proposed a "Global Garment Workers Minimum Wage" and discussed many of the inner workings of the modern
fast fashion industry practices that creates dangerous factory conditions and disasters. Charney's own factories have been heavily scrutinized for labor violations. In 2020, public health officials ordered the shut-down of Los Angeles Apparel due to "flagrant violations of mandatory public health infection control orders." Charney was able to sidestep the initial lockdown measures and keep employees from unemployment benefits by reopening as an essential business making and selling masks. 300 workers were infected with
COVID-19, and 4 workers died before the factory was ordered to close. Workers were also made to sign agreements releasing Charney and American Apparel from all legal claims against him or the company. These claims forced employees to go through mandatory arbitration, an internal process, and prevented lawsuits alleging workplace abuse from entering the public court system. Charney was "blindsided" by news of his termination, calling it a "coup." In court filings by his attorneys, it was alleged that the American Apparel
CFO had planned to oust Charney, and that he was persuaded to sign a disastrous settlement that left him with no job and no control of the company, despite being the largest shareholder. Charney alleged that the investigation was biased on the grounds that it was conducted by those who benefitted from an outcome that weighed in their favor. Charney asserted that he has never been charged with any crime or found guilty or liable for any of the accusations against him. Following his suspension as CEO in the summer of 2014, Charney teamed up with the
Standard General hedge fund to buy stocks of the company to attempt a takeover. In 2016, American Apparel's board dismissed a $300 million offer from Hagan Group that pushed for Charney's comeback. In the wake of his dismissal, reports of Charney's management style emerged.
Business Insider stated that Charney was unable to install a mature operational infrastructure to keep the company running smoothly, and didn't establish management bench strength for American Apparel. ==Los Angeles Apparel==