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MEMORANDUM (American Apparel)

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To: American Apparel Employees

From: Iris

Date: July 23, 2009

RE: Post-Crisis Plan

We would like to address our plan-of-action after our recent company crisis. As I am sure you are aware, United States Immigration officials recently accused American Apparel of employing 1,800 illegal immigrant workers in our factories in downtown Los Angeles, California. This accusation is extremely significant as that number represents a third of our workers.

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