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

The New York Post reported on Wednesday that troubled fashion retailer American Apparel (NYSE: APP) 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.