American Apparel was really cool, but this was before it became embroiled in lurid boardroom scandals. This company is famous not only because it add a stylish twist to seemingly plain t-shirts and jeans, but it also fought for human rights through slogans on its products and won friends by basic manufacturing especially in America. American Apparel built an empire of 260 shops in 19 countries around the world, including the UK.

Now, the fashion brand is now trying to make a fresh start after filing for Chapter 11 bankruptcy protection in the U.S.

Dov Charney, who founded this company in 1989, has faced a string of law suits over sexual harassment allegations, including the fact that he used a former employee as a “sex slave”, sent explicit text message to staff and masturbated in front of a female journalist.

American Apparel – the biggest manufacturer of clothing from America

Last summer, the company’s board suspended Charney as chief executive. The reason was “alleged misconduct and violations of company policy. After some investigations, a special committee said that “it would not be appropriate” for American Apparel’s founder to return. A very important aspect of the Chapter 11 filing is that it will temporarily block the legal claims against American Apparel. The controversy surrounding Charney has damaged the American Apparel brand. American Apparel is the biggest manufacturer company of clothing from USA and it is based downtown Los Angeles.

“American Apparel is not only an iconic clothing brand but also the largest apparel manufacturer in North America, and we are taking this step to keep jobs in the US, and preserve the ideals for which the company stands.” said Paula Shneider, the new chief executive of American Apparel. Also, she said that “American Apparel will re-emerge as a “stronger, more vibrant company” by strengthening its finances.” American Apparel is in competition with Forever 21, H&M and Primark.