American Apparel is reportedly outsourcing to other countries, marking the first time in 28 years the fashion-retailer hasn’t exclusively made its items in the United States.
According to the New York Post, the company has been producing shirts in Honduras and Nicaragua. Gildan Activewear—the Canadian company that bought American Apparel at auction for $88 million—confirmed the South American production to the Post later on, adding that “Made in Honduras” and “Made in Nicaragua” labels will appear on clothing this summer.
Though American Apparel’s merchandise has traditionally been made in Los Angeles, a Gildan spokesperson told the Post that it’s not currently clear where the apparel will be made going forward. “We will be evaluating many factors, including the specific preferences for Made in USA, as we assess the opportunities related to bringing this brand to consumers over the coming weeks,” the spokesperson said.
American Apparel has long been struggling: After filing for bankruptcy a second time, the retailer initiated liquidations and layoffs. The remaining 72 stores are also slated to close, according to the Post.