American Apparel still hasn’t filed second-quarter results, prompting the NYSE to send the company a letter yesterday warning they would be delisted if they fail to come up with a plan the exchange finds acceptable by November 15. Last week the company suggested they might have to file for bankruptcy, and said they didn’t know if they’d have enough money to make it through the rest of the year. But as for the mess with the stock exchange, AA blames their recent switch in accounting firms.
The delay in filing has been caused by the resignation of Deloitte & Touche as American Apparel’s auditor after the accounting firm said it found material weaknesses in internal controls over financial reporting. Deloitte requested more information from the company to determine if there were problems in previous financial reports. American Apparel has said it is working to give Deloitte more informatin.
American Apparel has hired back its former auditor, Marcum. The Los Angeles-based company said Marcum needs more time to review procedures for the first two quarters of the year.
So the books are so messed up that the firm that worked on them for ages can’t even quite make sense of them. How special.