American Apparel may soon bid adieu to LA: report

Los Angeles /
Aug.August 18, 2016 09:30 AM

Retailer American Apparel, still recovering from bankruptcy, is looking to relocate from its hometown of Los Angeles to the East Coast, according to the New York Post.

The company is slated to close its South L.A. manufacturing facility at 1020 East 59th Street in October with plans to move east, where the minimum wage is lower, the paper reported.

It’s also not planning on renewing  its DTLA headquarters’ lease when it expires in 2019, a source said.

The California minimum wage will increase to $15 by 2020, but will remain at $7.25 in states like North Carolina and Tennessee.

American Apparel closed its first facility in February as it emerged from Chapter 11 reorganization. In April, it laid off 500 workers. Its October closing will force another 50 workers out of their jobs.

As of March 31, the company, which boasts products “Designed, Cut and Sewn in Los Angeles,” had $9 million in cash on hand — less than half what it had at the beginning of the year. [NYP]Cathaleen Chen


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