American Apparel’s departure does not indicate wider problems in the clothing retailing industry, according to industry experts.
IBISWorld senior industry analyst Lauren Magner said its woes do not represent a broader industry trend.
“The Australian online website for American Apparel has been shut down and the company is also closing its three stores in Sydney, Melbourne and Adelaide over the next few weeks, so it will no longer have a presence here,” she said.
"Despite American Apparel underperforming in the Australian market, Zara, Topshop and H&M are doing very well.
"For example, Zara’s revenue in Australia rose from $180 million in 2014/15 to over $220 million in 2015/16."
IBISWorld estimates that the clothing retailing industry in Australia will generate $19.1 billion and employ more than 130,000 people in 2016/17.
Industry revenue is forecast to grow by an annualised 1.5% over the five years through 2021/22.