Stock Exchange threatens to de-list American Apparel

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Mon, 24 May 2010 9:42a.m. UPDATED: 11:18AM

Eric Watson co-owns American Apparel (NZPA)

Eric Watson co-owns American Apparel (NZPA)

Former Hanover Finance investors might take some comfort in knowing Eric Watson appears to have a few financial problems of his own.

The New York Stock Exchange has threatened to de-list American Apparel, which Mr Watson co-owns, for failing to file its accounts for the first quarter.

Business commentator Bernard Hickey told RadioLIVE’s Marcus Lush that Mr Watson is finding that indebted companies don't always make good business investments.

“It looks like he, along with a lot of other people who have bought things with a lot of debt, are finding some troubles with that particular company,” he says.

“So Mr Watson and Mr Hotchson are not flavour of the month at the moment with banks or investors.”

Shares in American Apparel fell 42 percent after announcing a $NZ27 million dollar loss.

RadioLIVE

Listen to Marcus Lush's interview with Bernard Hickey about Eric Watson, as well as his views on other business news

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