Apparel fabric maker Dan River Inc has posted a $5.1 million first quarter net loss amid a 3.4 per cent year-on-year dip in sales, tax hike and a $1.8m bad debt expense related to the Kmart's bankruptcy. The Virginia-based company said net sales for the period slipped to $158.4m from $164m last year while it was hit by an extra $2.8m income tax expense and Kmart's woes cost it almost $2m.