American Apparel's financial woes
Hipsters beware: bright-coloured underwear and translucent T-shirt emporium American Apparel is in a spot of financial bother, according to the LA Times. The newspaper announced last week that American Apparel’s stock fell 14% after its independent public accounting firm Deloitte & Touche resigned on 22 July, after 15 months with the company.
A filing with the Securities and Exchange Commission said that a Deloitte report identified ‘material weaknesses in internal control over financial reporting’ and advised that American Apparel hadn't maintained effective internal control over financial reporting as of 31 December.
Last May the Guardian reported that the retailer had suffered a £12.4m loss and there was ‘no assurance’ it could keep going. This could come as a major blow to legions of skinny-hipped shoppers around the world. The firm has over 200 retail outlets worldwide and become a hugely influential high street brand. Let’s just hope the company sorts its finances – we would hate to see another fuss like the riot that took place outside an East London American Apparel sale earlier this year.