American Apparel Leases Building
American Apparel's fate may lay in limbo, but that doesn't mean another company can't benefit from its assets. While American Apparel's rumored bankruptcy may be
American Apparel’s fate may lay in limbo, but that doesn’t mean another company can’t benefit from its assets. While American Apparel’s rumored bankruptcy may be coming closer to a reality by the day, official word has come out that another Southern California apparel company has leased one of American Apparel’s former dyeing and finishing plants in Los Angeles.
It has been confirmed that AST Sportswear Inc. has leased a 95,000 square foot facility, belonging to American Apparel, which shut down earlier this year. This space is enabling AST Sportswear to do its dyeing in-house.
“This will allow us to expand our product offering, streamline our supply chain, lower costs and ensure better quality control,” Abdul Rashid, AST Sportswear Inc.’s chief operating officer, said in a statement to the Orange County Business Journal.
AST Sportswear Inc. is almost a mirror model of American Apparel. They both specialize in basic apparel. Both companies decided to set up shop in up-and-coming parts of Los Angeles. This seems to point to previous reports that American Apparel may be toying with the idea of outsourcing certain manufacturing duties to other parts of the U.S.