American Apparel Gets Reprieve From New York Stock Exchange
Is the tide turning for American Apparel? We recently told you how its stock has been improving. Now the company announces that NYSE has un-cocked its gun and is giving American Apparel until Nov. 15 to file financial data that was due way back in June.
Previously NYSE had warned that failure to meet the deadline could result in a delisting. Reads a company statement: " ... The Exchange accepted the company's updated plan of compliance and, pursuant to such plan, has granted the company an extension until November 15, 2010 to regain compliance with its continued listing standards."
The Los Angeles-based clothing maker has had a rough summer that includes shareholder lawsuits, $120 million in debt, and that warning from the New York Stock Exchange.
As fall nears the hipster firm might have turned a leaf. But American Apparel says it is not of the woods yet:
The company will be subject to periodic reviews by the Exchange during the extension period. Failure to make progress consistent with the plan or to regain compliance with continued listing standards by the end of the extension period could result in the company being delisted from the Exchange.
... Although no assurances may be given in this regard, the company currently expects to complete the preparation and review of the financial statements and related disclosures for the Form 10-Q, and file the Form 10-Q as soon as practicable, but in any event by no later than November 15, 2010.
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