American Apparel under scrutiny by U.S. regulator for possible violations

American Apparel Hipster Turns Preppy As Stock May Be Delisted
Dov Charney of American Apparel.
Photograph by Keith Bedford — Bloomberg via Getty Images

(REUTERS) — American Apparel Inc (APP) said in a filing on Wednesday that the U.S. Securities and Exchange Commission has ordered an investigation into a potential legal violation related to Dov Charney, the company’s former chief executive officer.

The filing said the “investigation is a non-public, fact-finding inquiry” into “matters arising from the (company board)Suitability Committee’s review relating to Mr. Charney,” in reference to the process that formalized Charney’s firing in Dec. 2014.

The fashion retailer said it intends to cooperate fully with the regulator in its investigation.