American Apparel Avoids Delisting

An American (Apparel) in Berlin? This popular store sits among many small European boutiques, but also near a Lee Jeans store, on Alte Schonhauser Strasse in Berlin. But shoppers, be ready to pay: its prices aren't adjusted for the conversion rate.
CBS / Christine Lagorio
American Apparel Inc. said Friday that the New York Stock Exchange Amex LLC has accepted its plan to avoid being delisted from the exchange.

The exchange alerted American Apparel in August that it could be delisted if it does not file its second-quarter results in a timely matter.

American Apparel had previously filed a plan of compliance with the exchange in June that said it would update the exchange by Nov. 15 about its plans. It also plans to file its quarterly report by that date.

The troubled clothing chain said it might not have enough liquidity to sustain itself over the next year. It also reported a preliminary second-quarter loss and expressed doubt about its ability to continue as a "going concern," standard language foreshadowing a possible bankruptcy.

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.

American Apparel hired back its former auditor, Marcum.

The retailer said the exchange has accepted its updated plan of compliance and as a result, has until Nov. 15 to regain compliance.