American Apparel
Lacks transparency. Publishes some details, but doesn't show its workers are paid and treated fairly.
Last researched 2 November 2026 · 7 sources
Basics label known for blank T-shirts and fleece.
A serious breach of labour rights was documented in American Apparel's supply chain in 2017, and it's working towards a living wage but can't yet show workers are paid one.
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Why it's graded Lacks transparency
- Not met: Meets 3 of 6 Good requirements.
- Holds the grade back: It has 3 red flags: no proof yet of a living wage, clear breaches of labour conditions and a problem with pay, rights or safety with no fix shown. Two or more red flags means a poor grade.
- It isn't Harm on record: the most serious problem on its record (labour rights breach, last recorded in 2017) is more than 5 years old.
- Lacks transparency is still a poor grade: in supply chains like this, workers who can't be seen to be treated fairly are usually underpaid or unprotected.
- Checks its own supply chain. American Apparel looks for problems in its own supply chain and publishes what it finds. It found forced labour in 2024 and is fixing it, so it doesn't count against the grade. Another problem on its record counts against the grade: a labour rights breach in 2017. They're listed below under Confirmed issues.
Good requirements 3 of 6
- Not met: Pays a living wage, or holds a strong fair-pay certificationLiving wage: working towards one
- Not met: Respects worker rightsA confirmed problem counts against it: labour rights breach, last recorded in 2017
- Met: Supply chain independently audited or certified, or at least 80% made in countries with strong labour standards
- Met: No child or forced labour findings it isn't fixingIts own checks found signs of forced labour, which it is fixing. That's listed below and doesn't count against the grade.
- Met: Names the factories or farms that make its products, or is fully certified by a scheme that holds and audits that listPublishes its supplier list
- Not met: High-risk raw materials (cotton) traced or certified, or not a major part of its rangeNot traced or certified: cotton
Red flags 3
- Red flag: No proof yet that it pays a living wage (it's working towards one)
- Red flag: Clear breaches of labour conditions
- Red flag: A confirmed problem with pay, rights or safety not shown to be put rightShown to explain the grade. It isn't one of the 2 red flags that set it.
Stars it would earn as Good
None yet. Stars only show on Good companies. About stars
Where it's made
Honduras has the largest share, 79%. Bangladesh is next, at 21%.
| Country | Share | Worker rights | Legal minimum wage | Forced labour risk |
|---|---|---|---|---|
| Honduras | 79% | No guarantee of rights | Well below a living wage | Moderate |
| Bangladesh | 21% | No guarantee of rights | Far below a living wage | Moderate |
Evidence
What we found
- Publishes supplier list
- Owns or runs its own production
- Modern slavery statement
- Actively empowers workers (ownership, worker committees, union agreements, training)
- Doesn't show where its cotton comes from. Cotton is linked to forced labour in Xinjiang and Turkmenistan, and child labour in several growing regions, so it can't be graded Good until it traces or certifies it.
Research notes Since Gildan bought American Apparel in 2017, production has moved from Los Angeles to Gildan's factories in Honduras and Nicaragua, with some made in Bangladesh; by 2021 Gildan-owned plants made over 40% of its styles and most of its sales, while denim and small runs come from contractors. Gildan, which also bought HanesBrands in December 2025 and scored 46/100 in the 2026 Ethical Fashion Report, publishes a factory list and is accredited by the Fair Labor Association, but has no public living wage commitment and has not signed the International Accord.
What independent sources say
| Source | Result | Details |
|---|---|---|
| Baptist World Aid Ethical Fashion Report | Listed | Rated with parent Gildan Activewear Inc, which scored 46 out of 100 in the 2026 Ethical Fashion Report (average 31.5), after 50 in 2024. View |
| Fashion Transparency Index (Fashion Revolution) | Listed | Parent Gildan Activewear scored 54% in the 2023 Fashion Transparency Index. View |
| Australian Modern Slavery Register | Listed | Covered by Gildan's combined modern slavery report under the Australian, UK and Canadian laws; the latest covers the year to December 2025. View |
Confirmed issues 2
Only confirmed problems are listed, and old ones drop off after 10 to 15 years. A problem the company has fully put right no longer counts against it, and nor does one it finds and is fixing itself. How problems are counted
| Last recorded | What happened | Made amends? |
|---|---|---|
| 2024 | Parent Gildan's 2024 modern slavery report records 31 forced labour indicator cases, all linked to working hours, at its own and contractor factories, down from 42 in 2023.Found and being fixed by the company Not counted against the grade while the company is actively fixing it, because it found and published it itself. | PartlyGildan reported 23 of the 31 cases corrected during 2024 through corrective action plans and follow-up audits. |
| 2017 | In January 2023 Honduras' Supreme Court ruled that parent company Gildan unjustly dismissed five workers at its San Miguel factory in 2017 and violated their labour rights (BCGEU shareholder brief, 2024). Source · search the archive | Not knownThe court ordered the five workers reinstated with back pay; Gildan closed the San Miguel plant later in 2023 and no source confirms it complied. |
Unconfirmed reports
Credible reports that haven't been confirmed by a regulator, completed investigation or the company. They're shown for your information and don't affect the grade.
- A 2024 shareholder brief by the BCGEU union says parent Gildan's 2023 closure of its San Miguel plant in Honduras left about 400 workers with work injuries without medical care or a route to disability pensions; Gildan says it complied with Honduran law. Source
Sources and actions
Sources 7
Show all 7 sources
- American Apparel sheds Made in USA for Central American manufacturing (FashionNetwork, 2017) · search the archive · Wholesale shirts made in Honduras and Nicaragua after Gildan takeover
- What ever happened to American Apparel? (Glossy, 2021) · search the archive · Gildan-owned factories made over 40% of styles and most sales; mainly Honduras, expanding to Bangladesh; denim by contractors
- Gildan - Our factories · search the archive · Publishes a map and downloadable list of owned facilities and selected contractors (February 2026 update)
- Gildan 2024 Modern Slavery Report · search the archive · 0 child labour cases; 31 working-hours forced labour cases in 2024, 23 corrected
- Gildan 2025 sustainability performance tables · search the archive · Contractors 16% of group manufacturing spend; 55% of workers covered by collective agreements
- Gildan - Living wage · search the archive · Strives to meet or exceed local requirements; no dated living wage target
- BCGEU spotlights human rights at Gildan Activewear AGM (Manifest) · search the archive · Honduran Supreme Court ruled in Jan 2023 that five San Miguel workers fired in 2017 were unjustly dismissed
Company details
- Headquarters
- Canada
- Last researched
- 2 November 2026
- Cite this page
- Labour Lens, "Is American Apparel ethical? Labour rating", https://www.labourlens.net/brand/american-apparel, last researched 2 November 2026, accessed [date].
- Method
- Researched with AI assistance against published rules. How we check · What Lacks transparency means
Better-graded basics
Second-hand and refurbished goods create no new factory work, so they're Good by rule and come first.
Something missing or wrong?
Grades are opinions based on the evidence listed here. Send us evidence, or a right of reply if you represent American Apparel.