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American Apparel to miss filing deadline

Beleaguered US fashion retailer American Apparel will miss its deadline to file second quarter results and has confirmed that it expects to make a loss during the period.

American Apparel has informed the US equivalent of the FSA, the Securities and Exchange Commission, that its new auditor, Marcum, needs more time to work through its accounts.  

The chain did confirm, however, that it expects to make a loss during the quarter against a profit for the same period last year. Sales and gross margins were also expected to fall.

Last month Deloitte resigned as the company’s accountant.

American Apparel’s UK backers Lion Capital is reportedly considering its options after a raft of financial problems have plagued the business.

In March Lion agreed a $80m (£50m) loan to American Apparel. The loan terms had to be renegotiated in June after the retailer struggled to stay within its covenants.

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