American Apparel said Monday it received notice that it was in danger of being delisted from the American Stock Exchange.
WWD reports that the company is in danger of being kicked off the trading block because it was late in filing its second quarter earnings results, which were due June 30. Filing on time was one of the conditions the company had to meet in order to stay on the exchange.
Now that it’s in danger of losing its spot, the company says it “plans to provide supplemental information to the exchange to update how it intends to regain compliance by no later than Nov. 15,” and explained that it couldn’t file its results on time because it had recently switched accounting firms and needed more time to figure out its books.
We here at Styleite have followed what looks like the demise of American Apparel for some time now, reporting at the end of June that the company was on the brink of financial collapse. More recently, CEO Dov Charney denied that the company was in hot water, but with $120 million dollars in debt and an adverse opinion from one of the nation’s top-four accounting firms, we have no choice but to believe that things at everyone’s favorite basics store are really, really bad.
If there is a way that Mr. Charney and his businesspeople can find to bring the company back from the edge of the cliff, we hope they can find it. But if they do, we hope that in the future they’ll operate a more honest and inclusive business.
American Apparel Is On The Brink Of Financial “Collapse” [Styleite]
Uh-Oh: American Apparel Hanging On By A Fiscal Thread [Styleite]
American Apparel Is $120 Million In Debt [Styleite]
Dov Charney Denies Company’s Financial Problems [Styleite]