PracticeAuditDeloitte quits as auditor to American Apparel

Deloitte quits as auditor to American Apparel

Deloitte steps down as auditor of fashion retailer American Apparel after discovering information that could impact the previously stated 2009 year-end figures

Deloitte
has resigned as auditor of fashion retailer
American
Apparel
.

The US-listed business, which recently opened a shop within Selfridges, has
replaced Deloitte with its former auditor Marcum.

In a statement to the US markets regulator the
Securities and Exchange
Commission,
American Apparel said that information had come to
Deloitte’s attention that could materially impact the reliability of either its
issued audit report or the underlying financial statements for the year ending
31 December 2009.

Its auditors also identified internal controls weaknesses around financial
reporting, including the financial closing process.

“Deloitte has requested that the Company provide Deloitte with the additional
information Deloitte believes is necessary to review before the Company and
Deloitte can reach any conclusions as to the reliability of the previously
issued consolidated financial statements for the year ended December 31, 2009
and auditors’ report thereon,” American Apparel said in its statement.

Deloitte will respond fully to the new auditor’s requests for information as
part of Marcum’s inquiry.

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