The American Apparel founder and former ceo, reached Sunday by phone, confirmed that the headquarters of his new apparel company would be based in the region that’s about six miles south of his previous firm’s downtown Los Angeles headquarters. The choice is an interesting one as South Los Angeles – previously known as South Central — has long been cast as underserved.
Charney said he plans to build a factory there.
He added that more details about his new endeavor would be forthcoming, perhaps as early as within the next week and that in the near future he would be going out to raise money from investors. That’s in addition to a plan that would also include allowing some of his workers to become investors in his company.
Charney earlier in the year had teased followers to “stay tuned” after a bankruptcy court judge approved American Apparel’s plan for reorganization in a decision that essentially blocked him from further purchase offer attempts. Charney, who was fired from the company in late 2014, led a very public battle last year to get back into American Apparel. Those attempts included a last ditch effort to acquire the firm, which filed for bankruptcy in the fall.
In February, Chad Hagan, managing partner and group president of Roswell, Ga.-based investment firm Hagan Capital, confirmed he and Charney were working on a new company that would rival American Apparel.
The company, of which Charney declined to provide the name, will be a men’s and women’s basics brand. He’s also promising fair wages to his workers — something he’s advocated in favor of since his time building American Apparel. It’s a particularly timely discussion with California Gov. Jerry Brown set to visit downtown Los Angeles Monday to sign into law a bill that would raise the state’s minimum wage to $15 an hour by 2022 — legislation Charney said he supports.