CHIRLA "Educating, Organizing, Advocating"

2009 Newsmakers: Challenges, Opportunities in a Difficult Year
December 11, 2009

Clearly, the recession was the No. 1 factor affecting the apparel industry in 2009. The economic downturn reverberated throughout the industry, having an impact on every sector.

Many of the signs of economic malaise were easy to spot— and for some, these became indications of new opportunities.

Even as “for rent” signs began appearing on many of Los Angeles’ toniest shopping neighborhoods, landlords and would-be retailers began taking up these spaces in temporary pop-up shops. As many consumers cut back on their spending on luxury items, the new era of frugality enticed many premium-denim makers and contemporary brands to introduce low-priced diffusion lines to fill the gap. And as manufacturers scrambled to pare back inventory levels, offprice retailers were reaping the benefit of the flood of new merchandise for their stores.

The editors of California Apparel News have compiled their annual list of news-making people, companies, organizations and events for 2009.

Dov Charney
American Apparel and Immigration Reform
Always a newsmaker, apparel giant American Apparel made headlines in 2009 for its continuing efforts to address immigration reform—and the heavy blow it received in July when U.S. Immigration and Customs Enforcement (ICE) notified the company that upwards of 1,800 individuals in its factory labor force might be living and working in the country illegally.

The notification, which was accompanied by warnings of steep fines if the undocumented workers were allowed to remain on the payroll, forced the company to lay off approximately a quarter of its factory workers. Dov Charney, American Apparel’s founder and chief executive and an immigrant himself, was vocal in his disappointment with ICE’s findings, which came after a 17-month investigation.

In an open letter to American Apparel employees, Charney said he was disappointed by the Obama administration’s failure to bring about immigration reform. “It is my belief that immigrants bring prosperity to any economy. They become motivated workers, and they sometimes become motivated business owners like me. They bring fresh ideas, optimism and passion to any economy, and they help contribute to a prosperous future,” he wrote.

“I will continue to fight for immigration reform for the rest of my career,” Charney said. “Right now I will work hard to put pressure on political forces to help facilitate the legalization of workers here in the country and, as a second priority, help bring about immigration reform on a go-forward basis.”

Angelica Salas, executive director of the Coalition for Humane Immigrant Rights of Los Angeles, said business owners are in a “Catch-22 situation.” “They either let go of trained and talented staff that know the business [and risk setting] back their capacity [or they choose to] face ICE and immigration enforcement,” she said. —Erin Barajas

For more information, please visit: Apparel News.Net