American Apparel Stock Falls as Accounting Firm Resigns
American Apparel's stock nosedived this morning after its accounting firm, Deloitte & Touche, announced that it would no longer work with Dov Charney's fashion cult because the company's financial controls may not be reliable.
AA's stock dropped almost a fifth upon news of Deloitte's resignation. Bloomberg reports that AA has a history of late SEC filings, and risks being delisted from the NYSE if it doesn't file its latest report by the middle of August. Deloitte's full statement, citing "material weaknesses in internal control over financial reporting related to the control environment and to the financial closing and reporting process" at AA, is here.
Some of AA's most recent controversies are described here, here, and here. [Thanks to commenter scootcha]