American Apparel is having a terrible summer. First, their photo-based, no-uglies-allowed hiring practices got them lots of bad PR (from us). Simultaneously, the company was, you know, financially collapsing. The latest blow: potential delisting from the stock exchange.
Yesterday, the New York Stock Exchange sent AA a letter saying that it needs to file its second quarter financial results (which are already overdue) by November 15, or face delisting. The company's accounting firm resigned last month, and when it finally managed to file its other late quarterly results last week, it became apparent that the company is at legitimate risk of bankruptcy.
AA told the NYSE it plans to file by the November 15 deadline, "although it warned no assurances can be given as to when the form would ultimately be filed." At this point, the company is like a high school student whose house burned down and family died; sure, getting suspended from school is a hassle, but it has bigger problems than homework right now. Still—not to bore you with lots of technical financial jargon—getting delisted from the NYSE would be what experts refer to as "the beginning of the end of the end."