American Apparel suffers another loss

US fashion chain American Apparel’s like-for-like sales plunged by 16 per cent over the third quarter to 30 September.

Total sales dropped ten per cent to $134.2m (£84m).

Increases in production costs hit the figures, the company said.

American Apparel is working with its primary lender, Lion Capital, in a bid to breathe new life into the business. Last month, it amended the terms of the chain’s loan agreement to prevent it from breaking its banking covenants.

Tom Casey, acting president of American Apparel, 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 investment in technology and improved allocation while lowering our lease costs.”

Earlier this month the company reported ? – later than expected – a second-quarter net loss of $14.7m (£9.1m) after sales fell 2.4 per cent to $132.7m (£86m).

The company added that it would be concentrating on its basic ranges in a bid to turn the firm around.