Kevin Reed, Accountancy Age, Friday 30 July 2010 at 08:44:00

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.