Speaking of American Apparel... It has been reported that American Apparel INC. stock price is continuing to decline. Investors are no longer confident in American Apparel's financial future. The shares have dropped 21.3% as of a week ago. The chief executive officer, Dov Charney, has 6 to 15 months to get the company together. In efforts to address their financial issues, American Apparel INC. plans to:potentially close stores, reduce marketing expenses, decrease production, decrease raw-materials and labor, and make a few other cuts. In addition, American Apparel INC. took measures to change auditors. However, the U.S. Attorney's Office in Manhattan had subpoenaed documents related to its change in auditors (Deloitte & Touche had resigned as American Apparel's auditor last month). The investigation can lead to a possible indictment, which could make American Apparel INC. in even more trouble.
SOURCE: WWD
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