American Apparel Says It Was Not Contacted by SEC

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American Apparel didn’t really need any new image problems. The edgy clothier saw its shares slide 9 percent Tuesday as investors worried about a reported government investigation into the company’s boardroom memos.

The company, which makes its sweat-inspired duds in Los Angeles, has been plagued by scandals surrounding its quirky chief executive, Dov Charney, who has been accused of everything from sexual harassment to peddling porn. (See “Charney: The Naked Truth?”) It’s also being sued by Woody Allen, who claims the company improperly used his image.

Now, the latest albatross is a report that the U.S. Securities and Exchange Commission is investigating electronic correspondence among American Apparel executives, including an alleged Christmas Eve e-mail from American Apparel’s new financial chief saying the company “almost went bankrupt.”

American Apparel declined to comment on any email, and denied knowledge of any investigation.




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