<PAGE>   1
 
    AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON MARCH 12, 1997.
================================================================================
 
                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                            ------------------------
 
                                AMENDMENT NO. 1
                                       TO
                                   FORM 10-K
 
[X]   ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
      SECURITIES EXCHANGE ACT OF 1934 (FEE REQUIRED)
                  FOR THE FISCAL YEAR ENDED DECEMBER 31, 1996
                                       OR
[ ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
      SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
 
                FOR THE TRANSITION PERIOD FROM               TO
 
                        COMMISSION FILE NUMBER: 0-26430
 
                             TARRANT APPAREL GROUP
             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
 
<TABLE>
<S>                                                       <C>
                  CALIFORNIA                                    95-4181026
         (STATE OR OTHER JURISDICTION                        (I.R.S. EMPLOYER
      OF INCORPORATION OR ORGANIZATION)                   IDENTIFICATION NUMBER)
</TABLE>
 
                         3151 EAST WASHINGTON BOULEVARD
                         LOS ANGELES, CALIFORNIA 90023
              (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
 
       REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (213) 780-8250
 
                            ------------------------
 
    SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT: COMMON STOCK
        SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT: NONE
 
     Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes [X]  No [ ]
 
     Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to the
best of Registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [X]
 
     As of February 26, 1997, the aggregate market value of the Common Stock
held by non-affiliates of the registrant was approximately $36,250,399, based
upon the closing price of the Common Stock on that date.
 
     Number of shares of Common Stock of the registrant outstanding as of
February 26, 1997: 6,552,276.
 
================================================================================
<PAGE>   2
 
                                   SIGNATURES
 
     Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Company has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized on March 5, 1997.
 
                                          TARRANT APPAREL GROUP
 
                                          By         /s/ GERARD GUEZ
                                            ------------------------------------
                                                        Gerard Guez
                                                  Chief Executive Officer
 
     Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the Company
and in the capacities and on the dates indicated.
 
<TABLE>
<CAPTION>
                  SIGNATURE                                  TITLE                   DATE
---------------------------------------------    -----------------------------  ---------------
<C>                                              <S>                            <C>
 
             /s/ GERARD GUEZ                     Chairman, Chief Executive        March 5, 1997
---------------------------------------------      Officer and Director
                 Gerard Guez                       (Principal Executive
                                                   Officer)
 
              /s/ TODD KAY                       President and Director           March 5, 1997
---------------------------------------------
                  Todd Kay
 
          /s/ CORAZON R. REYES                   Chief Operating Officer,         March 5, 1997
---------------------------------------------      Secretary and Director
              Corazon R. Reyes

           /s/ MARK B. KRISTOF                   Vice President -- Finance,       March 5, 1997
---------------------------------------------      Chief Financial Officer and
               Mark B. Kristof                     Director (Principal
                                                   Financial and Accounting
                                                   Officer)
 
         /s/ KAREN S. WASSERMAN                  Executive Vice President,        March 5, 1997
---------------------------------------------      General Merchandising
             Karen S. Wasserman                    Manager and Director
 
            /s/ DONALD HECHT                     Director                         March 5, 1997
---------------------------------------------
                Donald Hecht
 
            /s/ BARRY S. AVED                    Director                         March 5, 1997
---------------------------------------------
                Barry S. Aved
</TABLE>