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Netflix's new documentary, Trainwreck: The Cult of American Apparel, explores the rise and fall of one of the most controversial fashion brands of the early 2000s. The series revisits the company’s explosive growth, its sudden collapse, and the role of its founder, Dov Charney. Trainwreck: The Cult of American Apparel, has brought new attention to the retailer’s complex story, shedding light on what really happened to American Apparel.
The brand was once known for its plain yet widely popular basics and bold ad campaigns. It was also one of the few clothing retailers to manufacture in the United States at the time. However, behind the image of progressive business was a troubled corporate structure and numerous allegations surrounding its CEO.
While the company filed for bankruptcy twice and eventually closed stores, its legacy and influence on retail and branding strategies remain subjects of interest. With the new documentary streaming on Netflix, questions about American Apparel’s operations, leadership, and decline are again being raised.
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Trainwreck: The Cult of American Apparel looks at Dov Charney’s rise and fall
Trainwreck: The Cult of American Apparel traces the early years of the brand through the lens of its founder Dov Charney. The series directed by Sally Rose Griffiths and released on Netflix on July 1, 2025, includes archived footage, audio recordings, and interviews with former staff and industry experts. It shows how Charney built the company from a wholesale basics supplier into a global retail brand.
Charney promoted vertical integration, producing all clothing in Los Angeles and marketing the brand as sweatshop-free. But the documentary reveals disturbing details. Former employees describe a toxic workplace, long working hours, and inappropriate behavior. Some staff reportedly received welcome kits that included vibrators and were encouraged to work from Charney’s home. Others recall Charney walking around the factory nude and using abusive language toward employees.
Charney’s behavior prompted multiple lawsuits, and the board of directors removed him in December 2014. TV Insider in a an article published on July 1, 2025 reports that American Apparel filed for restraining orders and released court documents showing further misconduct. Charney filed several lawsuits in response, including a defamation case, but they were dismissed or unsuccessful.
The Los Angeles Times on June 23, 2015 reported additional allegations, including verbal abuse and inappropriate behavior toward employees, which Charney has denied. These included derogatory comments and stored footage of sexual content on company equipment. Despite the controversies, Charney was never tried or convicted in court.
Following his removal, Charney claimed financial hardship and filed lawsuits against American Apparel's parent company, but his attempts to regain control were unsuccessful. In 2016, he founded Los Angeles Apparel, aiming to recreate his original business model. The company continues to operate and is expected to open a New York City store in 2025. In 2023, Charney collaborated with Kanye West's Yeezy brand but distanced himself following West’s public controversies.
Where is American Apparel now? Trainwreck: The Cult of American Apparel reveals the aftermath
American Apparel filed for Chapter 11 bankruptcy twice, first in October 2015 and again in November 2016. Gildan Activewear acquired the brand’s intellectual property for $88 million in early 2017. According to a Glossy report published on January 11, 2021, Gildan initially tried to preserve American Apparel’s made-in-USA ethos with select U.S.-manufactured items.
Over time, that commitment faded. By 2020, the “Made in USA” label had largely disappeared from the site, replaced with globally made alternatives, mostly manufactured in Central America. By 2021, American Apparel's online shop offered only a few American-made items, now sold through Amazon.
A Gildan spokesperson told Glossy the shift was due to consumer preference for lower-cost items. Gildan’s CEO Glenn Chamandy confirmed in 2017 that their purchase of American Apparel was a strategic acquisition of a brand name rather than a revival of the original values.
The brand’s retail stores, including all UK locations, shut down by 2017. The last UK store in Camden closed that year after a series of closures in 2016. As of now, American Apparel operates exclusively online under Gildan. The company has integrated most of its operations into Gildan’s supply chain, and only a few American-made items remain for wholesale buyers.
Trainwreck: The Cult of American Apparel places the brand’s collapse in the broader context of corporate culture and accountability. It features firsthand testimonies, including former employees, who felt terrorized by Charney’s management style. They recalled threats of blacklisting and reduced pay that eventually drove them to quit.
While Gildan continues to sell American Apparel products online, most are now produced overseas. Industry experts cited in Glossy note that competitors like Royal Apparel and Bella + Canvas have filled the market gap with more transparent U.S.-made options. For many customers, American Apparel has become a brand name detached from its original identity.
Despite filing for bankruptcy in 2022 due to pandemic-related challenges, Charney remains active in the business. Trainwreck: The Cult of American Apparel closes by highlighting how branding, leadership, and labor practices can intersect with far-reaching consequences.
Trainwreck: The Cult of American Apparel is currently streaming on Netflix.
