SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date
of Report (Date of earliest event reported): June 24, 2009
American
Apparel, Inc.
(Exact
Name of Registrant as Specified in Charter)
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Delaware
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001-32697
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20-3200601
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(State
or Other Jurisdiction
of
Incorporation)
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(Commission
File Number)
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(IRS
Employer
Identification
No.)
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747
Warehouse Street, Los Angeles, CA
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90021-1106
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(Address
of Principal Executive Offices)
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(Zip
Code)
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Registrant’s
telephone number, including area code: (213) 488-0226
Not
Applicable
(Former
Name or Former Address, if Changed Since Last Report)
Check
the appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2. below):
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¨
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Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
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¨
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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¨
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
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¨
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
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Item
8.01 Other Events.
As previously disclosed, on January 3,
2008, representatives of U.S. Immigration and Customs Enforcement (“ICE”)
conducted an inspection of American Apparel, Inc. (“American Apparel” or the
“Company”) to determine the Company’s compliance with Section 274A of the
Immigration and Nationality Act. The Company cooperated in all respects with the
inspection by ICE.
On June 24, 2009, ICE notified the
Company that it was unable to verify the employment eligibility of approximately
200 current employees because of discrepancies in these employees’ records.
Additionally, ICE notified the Company that another approximately 1,600 current
employees appear not to be authorized to work in the United States and appear to
have obtained employment by providing, on Form I-9, documentation which ICE
believes, based on its proprietary databases, to be suspect and not
valid. ICE’s notification provided no indication that the Company
knowingly or intentionally hired unauthorized aliens and no criminal
charges have been filed against the Company or any current
employees.
Unless these employees, within a
reasonable timeframe, are able to resolve the discrepancies in their work
records, or present valid identification and employment eligibility documents
that are subsequently verified by ICE, such employees will not be able to
continue their employment at the Company. At the present time, because of the
uncertainty regarding how many of these employees will have their work
authorization ultimately verified by ICE, the Company is not able to accurately
assess what the resultant impact of the loss of employees would have on its
operations. However, even if the Company were to lose substantially all of the
1,800 identified employees (which represent approximately one-third of the 5,600
employees the Company currently employs in its manufacturing operations in the
Los Angeles area), the Company does not presently believe that the loss of
employees would have a materially adverse impact on its financial results. The
Company believes that its current surplus levels of inventory and manufacturing
capacity would mitigate the adverse impact of any disruption to its
manufacturing activities that may potentially result from the loss of these
employees. As the ultimate impact is difficult to predict at this time, no
assurances can be given as to how, if at all, the loss of a significant number
of manufacturing employees will affect its business and operations. The Company
intends to cooperate with ICE to determine an appropriate timetable for the
Company to complete an orderly verification of the employees’ identification and
employment eligibility documents.
It is the Company’s policy, and has
been at all times, to fully comply with its obligations to establish the
employment eligibility of prospective employees under immigration laws, and the
Company intends to continue its cooperation with the ICE inspection in all
respects.
Signature
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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AMERICAN
APPAREL, INC.
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Dated:
June 30, 2009
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By:
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Name:
Dov Charney
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Title: President
and Chief Executive Officer
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