Earlier this month, online retailer Nasty Gal shocked fans by filing for bankruptcy. The e-commerce darling, which sold original designs, vintage pieces and items from other brands, became a social media hit thanks to innovative branding. Fellow millennial favorite American Apparel’s demise was not quite so surprising, having long been simmering in the pot despite the brand’s popularity. While both companies cited a number of reasons including legal troubles and mismanagement for their financial crashes, a major, troubling factor was also key—they kept most of their manufacturing within the United States. The higher wages and management costs of the “Made in USA” label, although ethical, come at a very expensive price. Mid-range brands trying to maintain that status have met with obstacles that fast-fashion competitors can sidestep by offering similar designs with minimum financial hassle. Read more at Observer.