Barry Forman’s garment business here thrived by making ladies’ polyester pantsuits in the 1970s and working with relaxed rayon during the 1980s. But 14 years ago, he spotted a trend he didn’t like: The work was going overseas, lured by dramatically lower labor costs in China, among other places. Rather than make the move, Mr. Forman sold his Los Angeles clothing business and, at the age of 50, retired, the Wall Street Journal reports.

Today, Mr. Forman is back at work in L.A.’s grungy fashion district. Overseas garment factories, it turns out, make their share of mistakes. And by the time defective goods reach U.S. shores, it isn’t feasible to send them back for repairs. Mr. Forman’s company, Santa Fe Finishing, does some of the fixing in Los Angeles. In the process, he rescues millions of dollars in merchandise that might otherwise be junked.

“When I was a manufacturer, I drove a mile to the factory when there was a problem,” Mr. Forman said recently from his second-floor office overlooking a factory floor. “What the hell do you do when your goods are from 9,000 miles away?”

The resurrection of Mr. Forman’s apparel career shows how the garment industry in Los Angeles has adapted in order to survive. No longer able to compete with low labor costs in Latin America and Asia, many L.A. apparel companies shifted gears to become specialty service businesses: They embroider stitching on jeans that are made elsewhere, or dye, wash or screen print T-shirts that come from abroad.

Mr. Forman sees his business as an emergency room for garments. With a staff of about 100, he triages the different damaged goods that come in — with stains, missing stitches and other maladies — figuring out what can be saved and how quickly. The goal is to rescue a garment that would otherwise die.

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