Took 'em long enough!
After months of delays, American Apparel handed over their not so shocking second-quarter results to the SEC on Monday.
According to the report, AA had a loss of $14.7 million and "may not have sufficient liquidity necessary to sustain operations for the next 12 months."
The report goes on to say it's "probable that beginning Jan. 31, 2011, the company will not be in compliance with the minimum consolidated EBIT covenant…".
In other words, American Apparel doesn't think they'll earn the $20 million they said they would in their newest agreement with Lion Capital.
Dov Charney & Co are working to make amendments so they'll remain in compliance, however there's "substantial doubt that the company will be able to continue as a going concern."
Better stock up on your generic clothes now!
[Image via AP Images.]
Tags: agreement, bankruptcy, lion capital, loss, second quarter, securities and exchange commission