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State to Aid Some Laid-Off American Apparel Workers

California has stepped in to help laid-off American Apparel (asi/35297) employees as they search for new jobs.

State to Aid Some Laid-Off American Apparel Workers

The California Employment Development Department announced that it has given $3 million to the Los Angeles Economic and Workforce Development Department – as well as the County of Los Angeles Workforce Development, Aging and Community Services – to assist 600 former workers.

“These were the people who decided to avail themselves of our offer,” Jan Perry, general manager of the city’s Economic and Workforce Development Department, told Southern California Public Radio. “It’s their choice to participate in what we have to offer.”

Through July 2018, the grant will cover training for vocational and computer skills, career counseling, assistance with resumes and unemployment insurance claims. It’s encouraging news for former employees who also received federal funds last month from the Trade Adjustment Assistance program, which provides money to American workers who’ve lost their jobs due to global competition or outsourcing.

In January, about 3,000 American Apparel employees in Los Angeles and surrounding areas were laid off following a bankruptcy filing in November 2016. Nearly 300 of the former employees now work for American Apparel founder Dov Charney, whose new venture, Los Angeles Apparel, has a factory operating in Los Angeles.

While American Apparel has gone out of business as a publically traded, vertically integrated manufacturer/retailer, the brand is still alive in the promotional products industry. In February, Montreal-based apparel maker Gildan (asi/56842) completed the purchase of American Apparel’s intellectual property rights, some wholesale merchandise and some equipment, but not its production facilities or retail stores. Gildan has secured U.S.-based contractors to make fabrics and sew garments for key American Apparel styles offered to the wholesale market, which includes the promotional products industry. At the same time, Gildan has also leveraged its global manufacturing capabilities to produce certain American Apparel styles abroad.