American Apparel Inc, the manufacturer and retailer of fashion basics, has been warned that the composition of its audit committee and board of directors flouts stock exchange guidelines.

A letter from the NYSE Amex LLC gives the Los Angeles based company until its next annual meeting of stockholders or 1 July 2012 (whichever comes earliest) to regain compliance with the exchange's standards.

American Apparel, meanwhile, says the discrepancy has arisen following the resignation of some directors. It intends to fill the audit committee vacancy and realign its board of directors in line with the demands.