• Q3 net loss of US$9.5m, versus $4.2m profit
  • Sales down 10.5% to $134.5m
  • CEO “excited” over new strategic plan

Loss-making retailer American Apparel is staying positive despite recording a third quarter loss amid falling revenues and a 16% decline in comparable store sales.

Chairman, CEO and founder Dov Charney said the company was “excited” to be working with lender Lion Capital on a strategic plan “consistent with our capital structure”.

The announcement comes a week after the company released its delayed second quarter results and warned that it might not be able to continue as a going concern if debt agreements were contravened.

Since then, American Apparel has appointed a new acting president, Tom Casey, who said: “We expect to improve financial results by supporting the brand with a customer-focused supply chain, leveraging our speed to market capability with lower distribution costs.

“We are optimising our retail store base through investments in technology and improved allocation while lowering our lease costs.”

Charney said the American Apparel remained strong and added that he saw “reinvigorated interest” in the brand.