Why did american apparel go out of business?

But the alleged misconduct of its founder, the backlash of its advertising methods, its tense relationships with its creditors and its low sales caused American Apparel to plummet. Zack Hurley, CEO of Indie Source, said he plans to hire at least a few dozen American Apparel workers for its contract manufacturing plant in downtown Los Angeles. Charney started a new company called Los Angeles Apparel, which manufactures its products in the Los Angeles area.