Eddie Bauer, which announced earlier this week it is to be taken private, has reported losses totalling US$197.6m for the third quarter of the year compared to losses of $10m the year before.

The apparel retailer, which said it was hit by a heavy impairment charge and income tax expense, posted revenues of $211.3m compared to $217.3m previously, marking a 3% decrease.

Same-store sales were down 1.5% in the quarter but during September showed a 5.9% increase, partly because of promotional activity.

President and CEO Fabian Mansson said: "Results for the quarter were in line with our expectations as we continued to liquidate spring and summer merchandise, but began showing improvement in September as more of our fall and holiday merchandise became available.

"We hope to build on this progress in the fourth quarter and through the Holiday season."