American Apparel has long bragged that they’re completely vertically integrated. Their strategy seems to stem more from ideologically avoiding sweatshop labor than serious fundamental analysis,
Our average factory worker makes $12 to $14 dollars an hour—the highest pay worldwide for the manufacturing of apparel basics, and significantly more than California’s minimum wage. For us, higher pay means heightened efficiency, a better and more consistent quality of work, stronger employee morale, and ultimately, retention rates of skilled operators. For them, higher pay is often a path to the American Dream for their families.
We don’t have to do things this way, we just believe it’s the right way.
Avoiding sweatshop labor might be effective marketing for their progressive hipster clientele, but not effective enough to avoid the brink of bankruptcy. The positive sentiment for the brand doesn’t seem to translate into enough of an increase in sales to offset the…
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Utopia, you are standing in it! 
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