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.