In this week's episode of the Netflix documentary series, Trainwreck, we delve into the rise and subsequent fall of the American clothing brand American Apparel. Once a steady rise in popularity among young people, this brand is now known as one of the American companies that failed miserably. "The Cult of American Apparel" covers the story of this fall and the horrific accusations against its founder, Dov Charney, making it a very interesting film.
While "The Cult of American Apparel" is about the clothing company that revolutionized America at one point, it focuses more on the man at its helm: Dov Charney. The hour-long documentary is designed to tell the story of Dov Charney through the unique account of his first big business venture. Born and raised in Quebec, Canada, Dov Charney had a fairly peaceful childhood, thanks to his origins in a very wealthy Jewish family from a wealthy neighborhood. But he struggled to cope with his parents' divorce from a young age, although it didn't seem to affect his adult life much.
Director: Sally Rose Griffiths
Stars: Helen Laurens, Michelle Lemay
He soon moved to the United States to attend high school, and it was there that he demonstrated his business acumen and a keen interest in doing things differently and not worrying too much about rules. Dov began smuggling clothing from American companies to Canada, first to give to friends and later for commercial purposes. Finally, in 1990, he formally abandoned his studies, dropping out of Tufts University to pursue his entrepreneurial ambitions, and it was then that he founded his first clothing company, American Apparel. Founding the company with a financial investment from his parents, Dov managed to build the business fairly successfully, but he didn't make a significant mark on the fashion industry or the market.
However, this was about to change completely in the 2000s, when young people became more interested in fast fashion, and a market opened up for a new brand aimed exclusively at people in their 20s and 30s. Dov Charney took advantage of this new trend and began promoting his brand more forcefully than ever, using an unconventional yet highly suggestive advertising style. By then, he had already established an American Apparel factory in Los Angeles, where he had relocated the company after founding it in South Carolina. In 2003, he opened his first store in Los Angeles. With increased brand visibility, both thanks to original and unexpected advertisements and the new clothing store in one of the country's most fashionable cities, people, especially young people, began flocking to American Apparel.
The company's sales grew so rapidly during this period that more stores were opened in other parts of the U.S. and also in Canada, and by 2005, American Apparel had officially expanded into Europe as well. At the height of its success, the company had stores in 11 countries, including one in Japan, where the appeal of the American clothing brand was spreading through the internet and popular culture. Celebrities began appearing on American talk shows and television wearing American Apparel clothing, and this form of advertising also had an impact. With "The 48 Laws of Power," a self-help book by Robert Greene that Dov Charney revered as his source of motivation and guidance, and a young team of employees by his side, the maverick entrepreneur would reach all the milestones of success.
American Apparel even went public in 2006, following a major restructuring of the company's board of directors, and was supposed to be the next great global American clothing brand. However, American Apparel is no longer anywhere to be found, and its website, for the time being, shows very limited stock and styles, indicating that the company is nowhere near what it was once expected to be. In the 2000s, there were numerous differences between American Apparel and other clothing brands in the United States, some of which were more noticeable than others.
To begin with, Dov Charney's company had a very distinct design style from other brands on the market, focusing more on solid-color clothing, but in all the hues customers were looking for. While most other brands opted for a bold aesthetic with logos and insignia printed all over their clothing, American Apparel opted for minimalism, devoid of logos or branding. This immediately caught the attention of teenagers and young adults, who were always passionate about standing out, and thus, this stylistic decision paid off.
The next important point was that American Apparel was a completely American brand, meaning that everything from production to finishing was done within the country, and Dov Charney was constantly talking about this distinction in public. He openly stated, in multiple media interviews, that the country's major fast-fashion brands manufactured their products in sweatshops, under extremely unsanitary conditions, in poorer countries like China and Bangladesh.
But, in contrast, his company did not support the exploitation of workers, often underage, in countries that allowed cheap labor, and focused on achieving a sustainable and inclusive garment industry. All major production steps, such as design, manufacturing, and distribution, were managed within the American Apparel factory in Los Angeles, and comparative clarity was also offered to customers. This humanistic stance, once again, set the company apart from its competitors, and many people began buying from them simply to support their cause.
Many of these accolades were evidently due to the company's founder and owner, Dov Charney, who was unlike most businessmen of the time. In fact, Dov was quite quirky and erratic in many ways, such as his support for the abolition of immigration laws, which also earned him sympathizers. But even stranger was his management style, and specifically his hiring practices, which were very informal and unusual. Anyone who came into the stores and expressed a desire to work for the company was hired, regardless of their previous experience or specialty. In many cases, young people caught shoplifting were offered sales and administrative positions, not only to give them a second chance, but also to ensure that others wouldn't use their tactics to attempt theft.
Naturally, many young people began to associate themselves with the company, and this was also evident in its advertising. Even during its most successful periods, American Apparel received much criticism for its ads, which completely contradicted the mores of the time. They maintained a commendable stance by not conforming to conventional beauty standards, which is why the models appearing in the ads were neither groomed nor dressed up. In fact, those appearing in these ads weren't even models, but simply employers and clients who were being asked for photo shoots. However, most of their ads resembled softcore pornography, with extremely suggestive images and lots of frontal nudity. But Dov insisted on using that style, which clearly attracted attention and therefore attracted customers, for a long time, even ensuring that standard advertising practices wouldn't be imposed on American Apparel when it went public.
Despite the brilliant potential American Apparel demonstrated, the company ultimately failed due to some basic strategic decisions. The reason most clothing brands outsource their manufacturing to countries with cheap labor is financial management, as managing manufacturing in the United States is simply not economically viable. Despite many people urging Dov Charney to do so, he refused to listen and remained steadfast in his principles, resulting in a decline in business. With the expansion of the business, higher sales were expected, and even necessary, but this did not occur. American Apparel had already begun to experience financial difficulties due to rising expenses and continued to invest more money into its business model when the 2008 recession hit, which ultimately severely affected them.
In addition to financial difficulties, American Apparel also faced other management issues, all due to Dov Charney's unusual and largely problematic approach to situations. Several former employees featured in the Netflix series "The Cult of American Apparel" speak about the extremely toxic and unpleasant environment in which they had to work. Dov used to conduct weekly evaluation meetings by phone, which all store employees were required to attend. During these meetings, store workers who didn't perform up to expectations were harshly criticized and even insulted in front of everyone, which considerably weakened their morale, even though they weren't allowed to express their feelings or disagree.
In fact, Dov had been blindly following the advice in his favorite book, "The 48 Laws of Power," and it was here that he clearly acquired a very flawed perspective on management. Based on Robert Greene's book, Dov focused on maintaining strict control over his employees.
Dov also lacked common courtesy and a general understanding of boundaries; or rather, he refused to let his employees set them. Because of this, he would call his employees on weekends and late at night, demanding they come to work or turn in a new assignment, violating day-off rules and practices. Enraged by acts of insubordination, as if his company were an army, he would call people back more than 50 times when they refused to comply with his orders and demands. Without a doubt, Dov Charney showed his true colors: he was a greedy opportunist, not a generous entrepreneur who wanted to revolutionize the garment industry by making it more accessible to customers and employees. This became abundantly clear when Immigration and Customs Enforcement (ICE) raided the American Apparel factory and discovered that more than 1,500 workers were in the United States with false or falsified documentation. It was clear that the man, who claimed not to believe in territorial boundaries or borders, was trying to secure cheap labor in an even more unsafe and unethical way.
However, allegations of unethical business practices weren't the only accusations against Dov Charney, as more serious matters were brewing behind the facade of his company. It was an open secret that Dov slept with employees he liked, but in many cases, he actually coerced and forced his employees to be intimate with him, threatening to fire them if they didn't. There was also a group known as the "Dov Girls," made up of young women who had no direct connection with American Apparel, but who were always close to Dov Charney, both at his office and at his home: the historic Garbutt House in Los Angeles. No one knew what these women did, but they acted as Dov's personal assistants, and it was clear that he forced them to do things, sexual or otherwise, by promising them a job or a favor in return.
With this strange and unusual arrangement in place, it was perhaps not so surprising that allegations of sexual assault and inappropriate conduct against Dov Charney also began to surface. Some women even came forward and spoke of how the man had sexually assaulted them and forced them to perform sexual favors on numerous occasions. Although these women did not appear in person for fear of lawsuits and other forms of retaliation, their accounts are presented at the end of The Cult of American Apparel. A video database on Dov's personal computer also demonstrated his misconduct toward women and employees, and one specific leaked video of him naked in a room with two female employees was the final straw.
Despite the horrific accusations against Dov Charney, no criminal charges could be filed against him due to a highly manipulative scheme he had already created and kept in motion. Every time American Apparel employees received a raise or a contract renewal, these documents included discreet clauses that prevented them from criticizing, denouncing, or exposing the company or its owner under any circumstances. Since the employees signed these contracts voluntarily, they cannot file formal complaints against American Apparel or Dov, as such complaints are unfounded in court.
However, Dov's tenure at American Apparel came to an end when the company's board of directors decided to take control and fire him in 2014 due to the allegations against him and also for misconduct. Nine months after his dismissal, American Apparel filed for bankruptcy and currently exists only in skeleton form. Dov Charney, however, never faced criminal charges for any of the allegations against him and subsequently created another clothing company, Los Angeles Apparel, which also failed. According to The Cult of American Apparel, Dov now works for another major fashion brand, Yeezy, owned by the extremely controversial and questionable Kanye West.
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