American Apparel postpones shareholders meeting

Los Angeles American Apparel said Friday that it will postpone its June 17 annual stockholders meeting so that the company can complete its evaluation of the classification of its revolving credit facility and related balance sheet issues.

The company made the decision due to effect that any changes in the revolving credit facility would have on balance sheets. If changes are required, the company must issue a restatement of its balance sheets for specific prior time frames, and these new documents must highlight portions of the revolving credit debt as a current liability versus a long-term debt. These changes, if any, also need to be filed with the Securities and Exchange Commission.

The retailer will not announce a new date until the accounting issues are resolved, according to a company statement.