American Apparel Says SEC Ends Investigation Without Enforcement Actions
American Apparel Inc. (APP), the young- adult clothing retailer, said an investigation by the U.S. Securities and Exchange Commission into its accounting practices ended without enforcement.
The investigation was completed and the SEC doesn’t recommend any action, the Los Angeles-based company said today in a regulatory filing.
The SEC requested documents from the chain in 2010 after Deloitte & Touche LLP quit as its accounting firm and was replaced by Marcum LLP. Before ending the relationship, Deloitte notified the retailer that its 2009 financial statements may not be reliable.
The retailer, led by Chief Executive Officer Dov Charney, has improved results in the past few months after posting losses for most of the past two years as sales fell. Revenue grew 15 percent to $56.3 million in December, following a 4.8 percent gain last quarter.
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