American Apparel and Manufacturing in L.A.

Dov Charney, the founder and former CEO of American Apparel, built a brand partly around the fact that his clothes were made here in L.A. It was a great idea. But these days, American Apparel is in trouble. It emerged from bankruptcy in February but its stock is still trading for about a dime. Last week, the company laid off 500 workers. It says it will improve its manufacturing process and maybe even outsource making some of its hipster wear. Is American Apparel a cautionary tale for other companies that want to manufacture products locally and pay the people who make them a living wage? Or a story of bad management?

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