American Apparel Is Being Sued by Former Workers

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American Apparel
American ApparelPhoto: Joe Kohen/Getty Images

Things are never dull over at American Apparel. Earlier this week, the New York Post reported that the company, which has prided itself on Made in L.A. merchandise, could be moving operations out of California because of the state’s impending minimum-wage hike, and relocating somewhere in the South. Then Women’s Wear Daily reported that American Apparel was exploring the possibility of a sale and reaching out to “the usual suspects,” although they remain unnamed. (The brand filed for bankruptcy almost a year ago.)

And, to close out the week, WWD has a story today that the company is being sued for “wrongful termination, failure to pay overtime and retaliation for expressing concerns about working conditions and discrimination.” The lawsuit was filed in L.A. Superior Court on behalf of Jeremias Pablo and Rene Ramos, who worked in the company’s factories. Pablo and Ramos allege that they were fired after complaining about safety concerns at the factory. In a twist, their attorney, Keith Fink, is also — wait for it — the attorney for ousted company founder Dov Charney.

Update: A rep for American Apparel got back to us, saying of the relocation rumors: “American Apparel does not comment on rumors or speculation.” On the report of a potential sale: “As we have regularly communicated to employees, vendors and customers, we continuously evaluate strategic alternatives.” The spokesperson declined to comment on the lawsuit.