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By
Reuters
Published
Aug 24, 2010
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American Apparel says faces possible delisting of shares

By
Reuters
Published
Aug 24, 2010

Aug 23 (Reuters) - American Apparel Inc (APP.A) said the company was unsure when it could file its quarterly report with regulators, which could lead to its shares being delisted from the American Stock Exchange.

American Apparel
Americanapparel.net

The Los Angeles-based hip apparel maker said Monday it received a warning letter from NYSE Amex LLC and that it had provided supplemental information to the exchange on how it plans to regain compliance by no later than Nov. 15.

"However, no assurances can be given as to when the form 10-Q will ultimately be filed," the company said in a statement.

The company, which recently said it could breach a loan covenant, has been in trouble time and again over SEC probes to sexual harassment lawsuits filed against its flamboyant chief executive.

The company's newly appointed auditors need sufficient time to complete their review procedures for the quarter ended June 30, it said in a statement.

American Apparel's former auditor Deloitte had quit after warning of problems with the company's reporting, and as a result, the reliability of its financial statements for the year ended Dec. 31, 2009.
American Apparel shares closed at $0.74 Monday on the American Stock Exchange.

(Reporting by Nivedita Bhattacharjee in Bangalore; Editing by Unnikrishnan Nair)

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