Probably has been going on for some time, but they seem to have re-positioned themselves as a label in terms of their roster over the years. Maybe it's just been a while since I looked at their roster.
I remember reading about Rich Egan/Vagrant in Andy Greenwald's Nothing Feels Good. The fact that the label took a more "Indie rock"-centric turn when the early 2000s scene/bands cooled down is far from surprising. The logo, site, and roster reek of American Apparel.