American Apperal Layoffs Hurt Stock Value

American Apperal Inc. had its shares plunge 14%, a result believed to be largely due to having formerly laid off 1,500 workers.

The company, which has long fought for foreign workers rights, laid the employees off in the second half of 2009 which consequently hurt their manufacturing capabilities. The company laid off the workers after being told by the Immigration and Customs Enforcement agency that approximately a third of its workers were not legally authorized to do so.

“The reduction in manufacturing efficiency was principally a result of the forced termination of over 1,500 experienced manufacturing employees in the third and fourth quarters of 2009 following the completion of the previously-disclosed I-9 inspection by U.S. Immigration and Customs Enforcement,” said the company Thursday.