LOS ANGELES-American Apparel begins layoffs in California of its manufacturing workforce. A report from the Los Angeles Times says the company plans to lay off 2,400 workers. The layoffs come as the company moves into the final stages of a bankruptcy and an acquisition.
Various components of the business are now in the hands of other apparel and textile companies, but the bulk of American Apparel’s workforce and manufacturing facilities remain unclaimed. While Gildan recently acquired the intellectual rights to the brand name and some equipment, it did not bid on any of the California manufacturing and distribution facilities, retail stores, or bring on workers from those locations.
More locally, Compton-based textile manufacturer Broncs is in talks to purchase the American Apparel manufacturing facility in Garden Grove, but only plans to hire about 200 employees from the original workforce.
Workers at the company were originally notified of potential layoffs in a Nov. 2016 notice issued by management. Under California law, the Worker Adjustment and Retraining Notification (WARN) act requires employers to provide employees with 60-day notice prior to a closing or large-scale layoff.