American Apparel Announces NYSE Amex Acceptance of Plan of Compliance
Los Angeles-based American Apparel Inc., a vertically integrated manufacturer, distributor, and retailer of branded fashion basic apparel, announced that it received a letter from the NYSE Amex LLC (the "Exchange") that the Exchange accepted the company's previously submitted plan of compliance and, pursuant to such plan, has granted the company an extension until August 16, 2010 to regain compliance with its continued listing standards.
As previously disclosed, on May 18, 2010, the company received a letter from the Exchange stating that the company's timely filing of its Quarterly Report on Form 10-Q for the quarter ended March 31, 2010 (the "Form 10-Q") is a condition for the company's continued listing on the Exchange, as required by Sections 134 and 1101 of the Exchange's Company Guide, and that the company's failure to timely file the Form 10-Q is a material violation of the company's listing agreement with the Exchange. The letter from the Exchange provided that the company must submit to the Exchange by June 1, 2010 a plan to bring the company in compliance with Sections 134 and 1101 of the Company Guide by no later than August 16, 2010, or it would be subject to delisting procedures. On June 1, 2010, the company submitted its plan of compliance to the Exchange. On June 17, 2010, the company received a letter from the Exchange stating that the Exchange completed its review of the company's compliance plan and granted the company an extension until August 16, 2010 for the company to file the Form 10-Q.
The company will be subject to periodic reviews by the Exchange during the extension period. Failure to make progress consistent with the plan or to regain compliance with continued listing standards by the end of the extension period could result in the company being delisted from the Exchange.
Although no assurances may be given in this regard, the company currently expects to complete the preparation and review of the financial statements and related disclosures for the Form 10-Q and file the Form 10-Q prior to July 16, 2010, but in any event, by no later than August 16, 2010.
About American Apparel
American Apparel is a vertically integrated manufacturer, distributor, and retailer of branded fashion basic apparel based in downtown Los Angeles, California. As of June 15, 2010, American Apparel employed approximately 10,000 people and operated over 280 retail stores in 20 countries, including the United States, Canada, Mexico, Brazil, United Kingdom, Ireland, Austria, Belgium, France, Germany, Italy, the Netherlands, Spain, Sweden, Switzerland, Israel, Australia, Japan, South Korea, and China. American Apparel also operates a leading wholesale business that supplies high quality T-shirts and other casual wear to distributors and screen printers. In addition to its retail stores and wholesale operations, American Apparel operates an online retail e-commerce website at www.americanapparel.com.