US: American Apparel risks de-listing over late annual report
American Apparel must meet the exchange's requirements by 15 April
Basic clothing retailer American Apparel Inc risks being de-listed from the New York Stock Exchange after it revealed negotiations over financing will delay the filing of its annual report.
In a filing to the Securities and Exchange Commission, the company said it was in the process of preparing its plan of compliance in response to a letter it received from the NYSE accusing it of failing to comply with the exchange's listing standards.
In order to maintain its listing, American Apparel must submit its plan of compliance by 21 March, in order to meet the exchange's requirements by 15 April, which the company said management has devoted "considerable resources" to.
The group said it was actively pursuing several possible financing alternatives as a means to increasing its available cash to fund debt service requirements and operational needs. This, it said, has had an "adverse impact" on its ability to timely complete its annual report ended 31 December.
"The company's staff and resources have been substantially committed to developing the Plan of Compliance and seeking financing alternatives, including its discussions with Capital One Business Credit Corp," American Apparel said in the filing.
"No assurances can be given that the company will be successful in consummating any financing transactions or in obtaining any amendment and waiver (or refinancing) of the Capital One Credit Facility when expected, or at all."
Earlier this month, American Apparel revealed an increase in full-year sales but said it expects 2013 adjusted EBITDA to plummet as costs related to its new distribution centre weigh on earnings. It is forecasting adjusted EBITDA of between $7m to $9m as compared to $36.6m last year.
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