American Apparel's Financial and Legal Woes Continue

As evidenced by their most recent quarterly filing, American Apparel's continues to grapple with financial issues.  Despite its strong brand recognition (among a host of accolades, they were named "label of the year" by The Guardian in 2008), it's reputation as a trendsetter, and it's provocative advertising, they are struggling to survive. The company lost $9.5 million in the 3rd quarter of 2010 (alone)  compared with a profit of $4.2 million for the same period in 2009.  Exacerbating the problem is the resignation of their auditors, Deloitte and Touche, in August, 2010 who claimed that there were "potential material errors in the consolidated financial statements for 2009".  This has become the subject of an official FBI criminal investigation. 
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