Sorry, Hipster D-bags: American Apparel Gets the Dreaded Going Concern Doubt
My dear Going Concern editor, bless his little heart, asked me not too long ago if I actually owned any American Apparel and my reluctant answer was that I might be in possession of a pair of socks or two. Though I may be a self-described hipster (just because it's better to call yourself one than actually be called one by someone else, duh), I do have standards you know. Plus I just don't look good in gold lame, Lycra, or anything made for a size 2 anorexic. And definitely can't rock the porn stache. Mostly I'm offended by American Apparel's sizing, which declares my scrawny ass an XL whereas anyone else's S fits me perfect. What's up with that?!
Regardless of whether or not you're actually in to their questionable fashion, you can't deny that the ship is going down. Hard.
American Apparel Inc's (APP.A) woes continued as it raised "substantial" doubt about its ability to continue as a going concern and warned it could breach a loan covenant, sending its shares down 22 percent to a lifetime low.
The company also said in a regulatory filing that it received a subpoena from the U.S. Attorney's Office for the Southern District of New York in July, as well as inquiries from the U.S. Securities and Exchange Commission regarding the resignation of its former auditors.
American Apparel's former auditor Deloitte had quit in March after warning of problems with the company's financial reporting, and the subsequent reliability of its financial statements for the year ended December 31, 2009.
Dude, don't you guys know that it's not cool to get fired by Deloitte? Getting fired by KPMG is SO much more cool. Amateurs.