American Apparel Inc. needs to change its board structure in the coming year or risk being delisted by the NYSE Amex.
This story first appeared in the July 14, 2011 issue of WWD. Subscribe Today.
The Los Angeles-based vertical retailer said Wednesday that it has received a letter from the NYSE Amex indicating that it is not in compliance with listing standards requiring at least three members on its audit committee, rather than the two the firm now has. The issue arose when board members Mark Samson and Mark Thornton resigned on July 1.
The company said on Thursday that it intends to fill the audit committee vacancy and realign the company’s board to meet the Exchange’s standards as “expeditiously as possible prior to the cure period.”
The letter said the company has until either the company’s next annual meeting or July 1, 2012, whichever comes first, to regain compliance. This year’s meeting was June 21.