American Apparel has said that an investigation by the US Securities and Exchange Commission into its accounting practices has ended without enforcement.
The investigation was completed and the SEC does not intend to recommend any enforcement action against the company, American Apparel said in an SEC filing yesterday, January 11.
The SEC issued the retailer with a subpoena for financial documents after Deloitte & Touche quit as its accounting firm and was replaced by Marcum. Before ending the relationship, Deloitte said that its 2009 financial statements may not be reliable.
The SEC also investigated a complaint by a former employee with the Occupational Safety & Health Administration in November 2010 that contained allegations regarding the company’s policies around the accounting of foreign currency translations and transfer pricing.
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