Report: American Apparel Struggles To Pay Suppliers, Shares Tumble More Than Four Percent

The New York Post reported on Wednesday that troubled fashion retailer

is struggling to meet its financial obligations. According to the publication, the company has been delaying payments to key suppliers by as much as 60 days. The situation hasn't reached a “crisis point” yet, but does damper the already weekend investor sentiment. American Apparel's financial woes stems from one-time restructuring costs and legal bills related to the firing of the company's founder and ex-CEO Dov Charney. Shares of American Apparel were trading lower by more than four percent on Wednesday despite a company spokesman telling the New York Post that “liquidity is better than it has been in a very long time” and that the company's holiday sales promotion was “on track” with expectations.