Will ‘Made In USA’ Be American Apparel’s Salvation?

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“Made in the USA” has been the backbone of American Apparel’s existence since the company went into business 27 years ago. CNBC.com reported Wednesday morning that Chief Executive Paula Schneider, who took the company’s reins last year, said this message got lost amid some “salacious” advertising, and controversial headlines regarding founder Dov Charney.

As American Apparel works to rebuild its business, which reported yet another sales decline on Monday, it’s hoping a renewed interest in American-made products will bring shoppers back into its stores.

Roughly 7,500 of American Apparel’s 8,700 employees work in Los Angeles, where it manufactures all of its apparel “right down to the strings that are in the hoodies,” according to Schneider.

“We have the opportunity to keep people employed, and it’s kind of a bit of call to action for people to come to shop,” Schneider told CNBC. “It’s a super important company and I think we have to call that out.”

Over the next few months, the company will raise the stakes on its “Made in the USA” slogan. Through a new crowdsourcing campaign, the retailer will invite local artists to submit their designs with the intention of bringing a yet-to-be determined amount of original artwork onto its selling floor.

American Apparel on Jan. 25 released a statement about its intention to implement a plan to revitalize the brand after getting through its recent Chapter 11 procedure.

In that statement, Schneider said the victory in court was affirmation that it is “a new day for the company, and a positive outcome for our customers, vendors and employees.”

With the trial over, Schneider affirmed American Apparel’s readiness to execute its turnaround strategy.

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