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


Related Articles

arrow_forward_ios
Geoff Palmer, 1000 West Temple Street in L.A. and Goldman Sachs CEO David Solomon (Getty, Goldman Sachs, Google Maps)
Geoff Palmer lands $260M loan on Temple Street project
Geoff Palmer lands $260M loan on Temple Street project
(Getty)
LA office market ends 2022 on a low note
LA office market ends 2022 on a low note
Shivom's Chandru "Kevin" Wadhwani along with a rendering of 124 East Olympic Blvd (Getty, Sustainability Summit, KFA Architecture)
Shivom to redevelop DTLA offices into boutique hotel
Shivom to redevelop DTLA offices into boutique hotel
Oceanwide's Liu Guosheng with  Oceanwide Plaza (Getty, Oceanwide)
Chinese developer finds buyer for unfinished Oceanwide Plaza project
Chinese developer finds buyer for unfinished Oceanwide Plaza project
444 South Flower Street (Getty, Joe Collver/CC BY-SA 3.0/via Wikimedia Commons)
Foreclosure auction for 444 South Flower Street delayed
Foreclosure auction for 444 South Flower Street delayed
Northland's Matthew Gottesdiener and Greenland Holdings’ Zhang Yuliang with the THEA at Metropolis at 1000 W. 8th Street in Los Angeles (TheaDTLA, LinkedIn, Getty)
Greenland sells Metropolis apartment tower for $500M
Greenland sells Metropolis apartment tower for $500M
Skanska USA's Richard Kennedy along with renderings of 1727-1829 E. Sacramento Street (Skanska)
Purple office project proposed in DTLA’s Arts District
Purple office project proposed in DTLA’s Arts District
Oceanwide's new CEO Liu Guosheng and former CEO Han Xiaosheng with Oceanwide Plaza (Oceanwide)
China Oceanwide CEO steps down, CFO takes helm
China Oceanwide CEO steps down, CFO takes helm
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...