American Apparel investigating claims by former auditing firm
Los Angeles-based American Apparel is investigating claims by Deloitte & Touche, its former auditing firm, that the clothing maker withheld financial statements.
Deloitte abruptly resigned as the independent auditor for American Apparel in July -- leading to an investigation by the U.S. attorney’s office in New York -- and was replaced by Marcum.
According to a regulatory filing Tuesday, Deloitte notified American Apparel’s audit committee this month that its report on the company’s finances for the year through Dec. 31, 2009, shouldn’t be relied upon.
American Apparel’s audit committee is refuting Deloitte’s assertion that the company withheld financial statements for February 2010 and made “related misrepresentations.”
“Management disagrees with Deloitte's assertions and does not believe that the February 2010 monthly financial statements were withheld,” the company said in Tuesday’s filing. “The company does not currently believe, including after discussions with Marcum, that the reaudit will result in any changes to the 2009 financials, though no assurance can be given in this regard.”
Shares of American Apparel rose 2 cents, or 1.2%, to $1.65 on Tuesday. The filing was released after the markets closed.
-- Andrea Chang