On Monday, October 5th American Apparel, a popular clothing brand known for its U.S. manufactured clothes, filed for bankruptcy.

“I’m not affected by American apparel because I don’t shop there because it’s too far away. I shop primarily at Lululemon and Pacsun.” Says Taylor Stoll, an AHS senior.

According to reuters.com, American Apparel has not made profit since 2009. This is because of the vast growing number of teenage stores popping up with cheaper prices and “flash fashion” outfits. As of September 30th, the company had 9,000 employees and 227 stores in 19 different countries.

The founder of American Apparel, Dov Cherney, will be the most affected by the company’s bankruptcy as he held 42% stake in the company until it was recently turned over to bondholders.

“I was so sad to hear that American Apparel was going bankrupt because it’s my favorite store. I hope it stays in business.” Exclaims Rocky Laabs, a senior at Arrowhead High School.

The company is one of only a few clothing retailers that manufacturers in the U.S. According to the company, the operations will continue to stay the same after a deal is reached with the lenders. For over fifteen years, the company stood as an example of how a company making clothes in the U.S.A. could be successful, socially acceptable, and cool.

According to Jerry Reisman, a bankruptcy attorney at Reisman Peirez Reisman & Capobianco LLP, “If it can continue to operate through the upcoming holiday season and generate increased holiday revenue, it just might emerge from bankruptcy,”.

According to npr.org, millennials (the primary target of American Apparel) are very conscious of social and environmental issues- which is why stores like American Apparel are so appealing. But consumers as a whole make their decisions on what to buy based on style and cost. Since American Apparel clothing is made in the U.S.A., it is more expensive.

According to the Los Angeles Times, a minimum wage worker in the L.A. factory of American Apparel would make $9 an hour, which totals to $1,440 a month. While a sweatshop worker making clothing for a company would make $90 per month in Vietnam, $127 per month in Mexico, and $156 per month in China according to the International Labor Organization.

Since American Apparel has to pay factory workers almost ten times more in the U.S. than if they chose to produce over seas, they have slightly higher prices on clothing than the average teenager brands. Because the prices are higher, they must create styles that are timeless so that people will always want to wear them.

According to Retuters.com, American Apparel is expected to make a comeback from the bankruptcy. According to court papers filed on October 15th, if they do make a comeback, American Apparel will have some of its most profitable years ever. American Apparel projects that by 2020 it’s net profit will be $23.7 million. It’s expected to start making profit in 2018, and it will be the first time the company has made profit since 2009.