American Apparel begins mass layoffs

While fashionistas across the nation lament the loss of their go-to shop for trendy fashions, 2,400 workers will soon be out of a job as American Apparel closes its stores and factories.

The brand, known as much for its brightly colored fashion staples as its controversial founder, has reportedly begun laying off workers in Southern California, according to the LA Times.

American Apparel was once the largest garment manufacturer in the U.S., with three factories in Los Angeles, Garden Grove, and South Gate, where a total of 2,400 workers are currently employed. The manufacturer currently operates on 1.5 million square feet – “the equivalent of 26 American football fields,” according to the brand’s website.

Most clothing is hand-sewn, and the faster it is made, the higher the worker’s pay. The site reports that workers can earn up to $25 an hour.

The layoffs come days after Gildan Activewear, a Canadian clothing manufacturer, purchased American Apparel for $88 million. Following the purchase of the bankrupt company, Gildan decided not to retain any of American Apparel’s stores or factories. Gildan has yet to announce details about its intention for the brand’s future.

Photo: Andrew Burton, Getty Images NEW YORK, NY - JUNE 19: People walk past an American Apparel store...

Analysts speculate that Gildan, who makes most of its product in Central America and the Carribean, will manufacture American Apparel products in cheaper states or abroad. The name American Apparel will likely become an ironic moniker for a fallen retail giant that once garnered $600 million a year in profits.

American Apparel’s 110 stores will remain open at least until April. The website, which is also still active, has been advertising 40 percent off all items without mention of its impending closure.

While reports of worker layoffs have begun streaming in since Monday, some factory workers will be kept on until the corporate sale is final in February.

According to the LA Times, workers laid off yesterday were given notice without severance pay.

Local fashion brand Broncs Inc. will keep on 200 former American Apparel employees after purchasing its Garden Grove factory, while Indie Source announced it plans to hire a few dozen laid off workers as well.

Los Angeles was once a hub for the design and manufacture of apparel, and American Apparel’s exit perhaps signals the end of an era for the region.

Los Angeles was once a hub for the design and manufacture of apparel, and American Apparel’s exit perhaps signals the end of an era for the region.

Read Michelle Robertson’s latest stories and send her news tips at mrobertson@sfchronicle.com.