Trouble is mounting for US fashion retailer American Apparel which has said it will miss its deadline to file second quarter results.
American Apparel has informed the US equivalent of the FSA, the Securities and Exchange Commission, that its new auditor, Marcum, needs more time to work through its accounts.
It did however confirm that it expects to make a loss, against a profit for the same period last year. Sales and gross margin are also expected to fall.
Last month Deloitte resigned as the company’s accountant.
It is reported that UK backers Lion Capital are now considering its options after a raft of financial problems have plagued the business.
In March Lion agreed a $80m (£50m) loan to American Apparel. The loan terms had to be renegotiated in June after the retailer struggled to stay within its covenants.