After losing money for six consecutive years , [3] American Apparel filed for chapter 11 bankruptcy in the U. In January , American Apparel laid off 2, Southern California workers and started the process of shutting down company factories and closing its stores, using Chapter 7-like tactics. As of mid, American Apparel runs as an online-only retailer and markets itself as "Ethically Made—Sweatshop Free," with the majority of its products being made internationally. In January , the company had an executive board consisting entirely of women. American Apparel was founded in by Canadian Dov Charney.