Apparel retailer One Price Clothing Stores Inc has axed about 200 employees at its South Carolina home office and distribution centre after filing for Chapter 11 bankruptcy protection last week.

The move, subject to Bankruptcy Court approval, marks the beginning of a sale of company assets to maximise the return to One Price stakeholders.

"While we are in active negotiations with interested parties with regard to our subsidiaries in Puerto Rico and the Virgin Islands, once final approval from the Bankruptcy Court is received we plan to proceed promptly with the sale of store leases and 'going out of business' sales," CEO John Disa said.

"This process is expected to be completed within six to eight weeks."

Disa added that the company was "deeply saddened" by the staff layoffs, which took place last Friday, but said there were more job cuts on the horizon.

"Obviously, further layoffs will follow as the company proceeds to liquidate," he said.