Can American Apparel survive?

There's a limit to how much bad news one company can take. This morning comes word that the L.A.-based apparel manufacturer and retailer has been subpoenaed by the United States Attorney for the Southern District of New York regarding a switch of auditors. In an SEC filing, the company also warned that it would probably fall out of compliance under a loan agreement with Lion Capital. That could trigger a series of bank defaults, raising "substantial doubt" about the company being able to keep going, says the filing. At last check AA shares were hovering at $1.10, down sharply on the day. Of course when your stock is trading at a buck, there's really not much to say. Here's the filing.

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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
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