Discount department store Loehmann's could be facing a lawsuit after a transgendered woman said workers at one of its stores barred her from entering a fitting room.

Jane Galla said the shop on Manhattan's Seventh Avenue would not let her use the communal changing room because she is transgendered.

Galla, who has been living as a woman for three years, also says employees made her leave the women's bathroom on another visit to the store.

According to The Transgender Legal Defense and Education Fund, the two occurrences are discriminatory. The fund wants Loehmann's to commit to new policies which recognise the rights of transgendered people.

City law states that transgendered people must be allowed entry into facilities consistent with their gender identity.