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American Apparel to be sold for $382.5 Million
With clothes made in downtown Los Angeles, indie fashion manufacturer American Apparel is about to be sold for $382.5 million to a "little-known" investment firm.
The New York Times reports that the company, founded by the always entertaining Dov Charney, will announce its sale tomorrow. The new owners? Endeavor Acquisition Corporation, owned by Jonathan J. Ledecky, who will keep Charney on as CEO.
The sale is almost as surprising as the history of American Apparel, a company that only started three nine years ago. In a market seemingly saturated by the Gap, Urban Outfitters, and Old Navy, American Apparel appealed to a younger crowd who enjoyed the highly sexualized advertising and hip stance.
Run more like an Internet start-up than a sweatshop, American Apparel boasted average hourly wages of over $13 an hour, healthcare, and a variety of benefits ranging from free bus passes to free ESL classes to on-site masseurs. They were even the beneficiary of PETA's Libby award for Best Vegan-Friendly Clothing Company of 2006
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