American Apparel is seeking to move its downtown Los Angeles headquarters to another location, according to sources that spoke with The New York Post.
The clothing company's lease on its downtown headquarters ends in 2019, but the company is reportedly looking at moving to another state with a lower minimum wage than California’s.
California is increasing minimum wage incrementally until it hits $15 an hour in 2020.
The company has been scaling back its operations lately, closing a dying factory in Hawthorne and closing a denim facility in South Gate.
The company filed for bankruptcy in 2015, claiming more than $300 million in debt.
An American Apparel spokesperson tells FOX 11 News that the company “does not comment on rumors or speculation."
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