Update on American Apparel

American Apparel’s preliminary results for its third quarter are not looking very good.



The beleaguered retailer said it could not meet the deadline to file a quarterly report for the three months ended Sept. 30, noting that efforts related to its Chapter 11 bankruptcy filing in October have taken up a good deal of its time.



But American Apparel released estimates in which net sales for the quarter were down 19.1% to $126 million.



Net loss for inched down to $18.75 million from $19.18 million in the year-ago period. The Los Angles Times credited the improvement partially to the fact that the share price for American Apparel has fallen so low that it changed the financial effect of warrants, which give investors the right to buy stock at a certain price.



American Apparel has been cutting costs as part of a turnaround strategy announced by new CEO Paula Schneider earlier this year.