American Apparel Inc is laying off employees as part of its effort to turn around business after its bankruptcy.
The clothing retailer has reportedly laid off 500 employees that are part of its manufacturing process. It says there’s a mismatch between workers and clothing output. The company also plans to make less clothing to help clear out its inventory.
The company spent months considering the layoffs and decided to go forward with them to increase efficiency. American Apparel is also considering manufacturing some of its products through another company. However, it claims they will still be made in America, reports Fortune.
American Apparel’s bankruptcy plan included turning over control of the company to bondholders. This move fended off efforts from former CEO Dov Charney to take over the company again.
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