It’s been a while since we’ve had a good bankruptcy rumor floating around. Jezebel says thong superstore American Apparel is just asking for it: “[The retailer] has experienced declining year-on-year same-store sales in every month for which the company has made records available since February, 2009.”
Lots of clothing retailers had a rough 2009, but Jezebel’s post was spurred in part by last week’s news that the retailer’s public accounting firm was resigning because it had discovered problems with American Apparel’s financial reporting. In an SEC filing, Deloitte & Touche advised:
…certain information has come to Deloitte’s attention, that if further investigated may materially impact the reliability of either its previously issued audit report or the underlying consolidated financial statements for the year ended December 31, 2009 included in the company’s 2009 Form 10-K.
American Apparel missed the SEC deadline for reporting Q1 2010 results, and now has until August 16th to file.
“American Apparel’s Bankruptcy Is Inevitable” [Jezebel]
“American Apparel’s auditing firm resigns; stock plunges 14%” [Los Angeles Times]