American Apparel bites back in Deloitte row

Troubled fashion brand American Apparel has hit back at claims by its accountants at Deloitte that management withheld financial statements from them.

The Los Angeles-based company headed by controversial chief executive Dov Charney is struggling with towering debts, and saw its shares plummet when Deloitte quit abruptly in July.

Deloitte was called in to advise the company in April 2009 after a tense scramble for a debt lifeline.

American Apparel said: "Management disagrees with Deloitte's assertions and does not believe that the February 2010 monthly financial statements were withheld."

The firm, which operates more than 280 clothing stores worldwide and eight in London, received inquiries from the US Securities and Exchange Commission after Deloitte quit and its shares fell by 14%.