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American Apparel laying off employees as it closes factories


Bankrupt American Apparel has started the final, most painful chapter in its drawn out saga.

Approximately 2,400 employees of bankrupt American Apparel will soon be out of a job as the company begins to close or sell its three factories in Southern California, reported The Los Angeles Times.

Also on the chopping block are American Apparel’s 110 remaining stores, which are expected to close within a few months.

The brand and some assets were sold at an auction last week to Canadian clothing maker Gildan Activewear for $88 million. Gildan decided not to take over the company’s factories or its stores.

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