The troubled clothing manufacturer in November had filed for bankruptcy for the second time. Workers at three of the firm’s production factories were told they could be laid off Jan. 6, the LA Times reports citing the California Employment Development Department. Their jobs hinge on the likelihood of a sale to Gildan Activewear, a Canadian clothing manufacturer.
American Apparel this year laid off at least 500 employees as the apparel manufacturing industry overall in Southern California has been in decline, according to analysts. “It’s a big number,” said Craig Johnson, president of consumer research firm Customer Growth Partners. “There are not a ton of U.S. large-scale apparel manufacturers left.”