Women's and children's apparel retailer One Price Clothing Stores Inc has axed chief financial officer C Burt Duren over alleged representations made to the company's lenders.

The South Carolina-based company, which currently operates 550 stores worldwide, said issues were raised regarding representations made in connection with its revolving credit facility, resulting in Duren's termination.

Its board of directors-controlled audit committee is now employing outside legal counsel to review the facts and circumstances surrounding the controversy, and to make contact with the Securities and Exchange Commission regarding the matter.

"We are committed to fully investigating and resolving issues related to representations made to our lenders and made in our financial reports, and we will take appropriate action against any employee or former employee found to have committed any wrongdoing," CEO John Disa said.

"We have communicated an absolute zero tolerance policy for any such acts and we plan to act promptly."

In the interim, Sun Capital Partners Inc vice-president Lynn Skillen will serve as CFO of One Price.