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The week's question
In March 2025, in the thread "Re: OT, out", Umm asked the members: "Do you think it is because America is made up of magical soil that makes businesses based in America magically profitable?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Halls of Shrewd'm / US Policy
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Author: jerryab ✺  😊 😞
Number: of 86281 
Subject: Re: Minnesota 1, Spankee 0
Date: 02/16/26 12:46 PM
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I have never heard of a company being fined.

'In 2009, American Apparel fired approximately 1,600 to 1,800 factory workers—nearly one-third of its Los Angeles workforce—after a U.S. Immigration and Customs Enforcement (ICE) audit revealed they were unauthorized to work. Despite the company's "sweatshop-free" branding, this, along with subsequent legal issues and financial trouble, significantly impacted production.

Key details regarding the 2009 American Apparel immigration audit:

Audit Findings: ICE investigators identified about 1,800 employees with questionable documentation, leading to the termination of 1,600 who could not prove their legal status.
Investigation Origin: The audit began in January 2008, prior to the mass firings in late 2009.

Company Stance: Founder Dov Charney, known for pro-immigrant views, was "deeply saddened" by the firings but complied with the law. The company maintained it did not willingly hire unauthorized workers.

Impact on Business: The loss of experienced workers forced a scramble for replacements and contributed to financial pressures, including a $4.4 million reduction in operating income in early 2010.

Shareholder Lawsuits: The company faced lawsuits from shareholders claiming management failed to disclose the risks associated with its reliance on a largely immigrant workforce.

Subsequent Events: The company later entered bankruptcy in 2015 and 2016 before being acquired and moving away from its exclusive "Made in USA" model.'
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This community has written 86,214 posts about US Policy. The article-length ones it recommended most:
It's going to get worse · 33 recs · 2025
G’day Donny · 30 recs · 2026
Old Related Story · 28 recs · 2026
HCR is a national treasure · 27 recs · 2025
Fascism in America · 27 recs · 2025
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