Scott Kidder

Now, American Apparel is opening the kimono — and it’s not necessarily a pretty sight. Since going public last December in an unorthodox maneuver, the company has conceded it suffers a number of “material weaknesses.” According to a filing with the Securities and Exchange Commission, these include “inadequate expertise in the application of U.S. generally accepted accounting principles.” The company is grappling with its fourth sexual-harassment lawsuit, and its former insurer says it won’t pay any damages.