American clothing manufacturer, designer, distributor, marketer and retailer based in Los Angeles American Apparel’s days as a manufacturer are numbered. The 27-year-old teen retailer, which boasts on its website that its togs are ‘Designed, Cut and Sewn in Los Angeles’ is in plans to pull up stakes and move East — possibly to North Carolina or Tennessee where the minimum wage is $7.25. American Apparel, which emerged from Chapter 11 reorganization in February last, is likely to close down its second factory this year. The closure of the facility in Los Angeles making knit fabric, will force 50 workers out of their jobs. In February, the company closed its first facility that handled the fabric dyeing.

Known for its provocative ads and its ongoing legal saga with ousted founder Dov Charney, American Apparel once operated six factories. The lease of its largest factory, which doubles as its downtown LA headquarters, expires in 2019. The company does not plan to renew the lease, sources said. Meanwhile, the company continues to struggle financially.