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American Apparel Brand Will Soon Appear on Clothes Made Elsewhere

  • New owner Gildan to produce some styles abroad at lower prices
  • Gildan says border tax on imports would hurt the industry
Men's T-shirts and sweaters are displayed for sale at the American Apparel Inc. factory boutique in downtown Los Angeles, California.
Photographer: Patrick T. Fallon/Bloomberg

American Apparel, a brand that developed a following by making clothes in the U.S. at a time when garment makers sought cheap labor abroad, is changing its original mission under new ownership.

Canadian manufacturer Gildan Activewear Inc., which bought American Apparel for $88 million in a bankruptcy auction this month, will continue producing some of clothes in the U.S. But it will also slap the brand on cheaper wares made elsewhere as it expands into international markets.