American Apparel closes dye house facility in Hawthorne
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Los Angeles - After having just exited bankruptcy, American Apparel is still going through various company changes. The Los Angeles-based fashion chain just revealed that it will shutter its Hawthorne dye house in California.
Currently, the dye house building has 75 workers employed by American Apparel. Of those 75 employees, only 20 will be transferred the company’s facility in Garden Grove. The dye house’s closure date is not yet disclosed. However, as reported by WWD, the workers at the facility were notified of the closure through a letter from the company’s chief executive officer, Paula Schneider. The letter, according to the publication, considered the move a business decision in order to help bring the company back to profitability. The closure serves as a way to “trim certain workforce redundancies,” according to the signed letter.
This serves as one of the company’s changes since its reorganization plan approval. The company filed for bankruptcy last October and just recently exited this month. As part of emerging from bankruptcy, the apparel company is still in progress of working towards its goal of regaining profitability. The dye house closer is one of those steps to making positive changes for the company.