American Apparel Shares Plunge On Going Concern Issues (APP)

Shares of American Apparel (AMEX: APP) saw heavy downside pressure off the open today, only to trade lower into the afternoon session. Shares are currently trading down 30 cents at $1.09. Today at about 1pm the company released a PR stating the company had "substantial doubt about its ability continue as a going concern and warned it could breach a loan covenant" reports Reuters.

The company was recently subpoenaed by the SEC regarding the resignation of its former auditors. With sales declining and what looks to be an upcoming default, it appears the company has substantial headwinds.

American Apparel 52wk Range: $1.08 - $3.90.