Sector Update: Consumer Shares Keeping Gains

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Consumer shares are higher in mid-day trading,while American Apparel (APP) may have to file for bankruptcy protection.

In consumer sector ETFs, the SPDR S&P Retail (XRT) is up 1.0%.

In mid-day news, shares of American Apparel are down after the Los Angeles-based clothing company said the shortfall in its cash may force it to seek bankruptcy protection, Bloomberg reported.

Two American Apparel board members from lender Lion Capital resigned to evaluate the investment, the report said, citing a regulatory filing.

American Apparel shares are down 15.9%, or $0.15, to $0.81.

Meanwhile, Office Depot (ODP) is down 11.8% to $4.08, after the company announced that the Internal Revenue Service has denied the company's claim to carry back certain tax losses to prior tax years under economic stimulus-based tax legislation enacted in 2009.

As a result, the company has reassessed the carry back of tax losses in 2010 to prior periods and will restate its financial results to revise the accounting treatment regarding its original tax position. The periods covered by the restatement are the fiscal year ended December 25, 2010 and the quarters ended June 26, 2010 and September 25, 2010.

The company anticipates that it will file the restated financial statements on or about April 6, 2011.

By FNNO Staff

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