There’s more than one American Apparel among the tourist traps on Hollywood Boulevard. The chain retailer that became famous for tee-shirts bearing a proud “Made in Downtown LA” label is popular enough to warrant two locations on the Walk of Fame: one at 6615 Hollywood Boulevard, and another four blocks away at 6922, directly across from Graumann’s Chinese Theatre.

American Apparel has proven popular enough to warrant two locations in four blocks on Hollywood's Walk of Fame. (M.J. Prest/EthicalStyle.com)

Both locations are perpetually packed with tourists eager to bring home one of its popular stretchy tank dresses, holographic leggings, or cheeky tees — perhaps from its “Legalize Gay” collection now populating the window displays. They do a brisk business with the out-of-towners, but you’ll still find plenty of locals browsing the racks. After all, American Apparel is a local brand.

The company was founded in 1998 by Dov Charney, a Canadian free spirit who quit his studies at Tufts University before bouncing around the country from Wall Street to South Carolina. He landed in Los Angeles on Independence Day in 1997 and put down roots for his burgeoning tee-shirt business the following year.

In the 11 years since, American Apparel’s staff has swollen from one to 5,000, making it one of Los Angeles’s largest employers. More than 80 new stores opened in 2008 with combined sales of $341-million — a 62 percent increase over 2007. It plans to expand to 800 retail locations internationally in the next few years.

The brand’s influence has become inescapable, even if you don’t have a retail location near you. The Guardian dubbed it the “Label of the Year” last November. Online tee-shirt emporiums like Threadless buy plain American Apparel shirts in bulk and print their own designs on the blanks. The company has played a crucial role in promoting the use of solar power and organic cotton without charging a huge premium for the privilege. (For example, its best-selling unisex short-sleeve tees are $17 for conventional cotton and $18 for organic.)

But its celebrated “vertical integration manufacturing” strategy is American Apparel’s standout philosophy. From start to finish, every garment under the brand’s name is produced in Los Angeles. Taking out the middlemen that typically contract with overseas factories, the company’s designers can more easily pounce on trends while they’re still fresh and get new items on the shelves at lightning speed. The executives personally oversee its manufacturing processes to maintain quality control. And because its inventory moves so quickly, the company almost never puts its stock on sale.

American Apparel is not without controversy, however. Mr. Charney has been on the receiving end of multiple sexual-harassment lawsuits from former employees, although none of the charges have stuck. The company’s pornography-themed advertising campaign regularly toes the line between decency and scandal. Actor and director Woody Allen successfully sued American Apparel for $5-million earlier this year for using his likeness on a billboard without permission.

But the good the company has done in Los Angeles — and for breathing new life into “Made in the USA” — is undeniable.

Perhaps the brand’s most attractive ethical credential is the compensation packages it offers its workers — even those lowest on the totem pole. Seamstresses make an average of $12 per hour, nearly double the minimum wage. Benefits include full medical coverage as well as free meals, English lessons for recent immigrants, and an on-site health clinic. The company also believes in sharing the wealth: Factory workers were granted a total of $25-million in stock options in 2008.

It’s conceivable that no other company has been as successful at maintaining its ideals while turning a huge profit. But by going back to basics and treating its employees well, American Apparel personifies the American dream.