American Apparel

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American Apparel, LLC is a clothing company based out of Los Angeles, California. It has over one-hundred and fifty-five stores in eleven countries. Its claim to fame is sweatshop-free clothing made in Downtown Los Angeles, where it pays its employees an average of US$13 per hour. Employees also receive benefits such as paid time off, healthcare, company-subsidized lunches, bus passes, free ESL classes, on-site masseurs, free parking, proper lighting and ventilation, and the most up-to-date equipment. It is currently in the process of large retail growth, opening stores in the United States, Israel, Japan, Korea, Netherlands, Switzerland, Germany, Canada, the UK, France and Mexico.The Corporation, Business Week (June 27, 2005). [Living on the Edge at American Apparel].

It was recently ranked 218th in Inc. Magazine's annual list of the 500 fastest growing companies in the country, with a 525% three-year growth and revenues in 2004 of over US$124 million.

Criticism

The source of most criticism for the company is their sexually charged advertising and unconventional corporate culture. American Apparel's CEO, Dov Charney, was also accused of sexual harassmentJosh Dean. Inc. (September 2005). [Dov Charney, Like It or Not]. by several female employees, and reportedly performed oral sex on a female employee and masturbated during a two-month interview with Jane reporter Claudine Ko.Claudine Ko. JANE (August 2005). The company is criticized for its sexually charged advertisements, which feature suggestive photos taken in an amateur-pornographic style reminiscent of Calvin Klein's ad campaign in the 1990s, and been accused of focusing on physical appearance in its hiring practices for retail positions; similar to those of Abercrombie & Fitch.

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