American Apparel Inc Q3 Loss Widens, In Talks For $15 Million Loan

American Apparel Inc.'s

third-quarter loss widened substantially and the company said it expects to ink a $15 million credit agreement in the current period. American Apparel shares are down 38 percent in the year to date. In Monday's extended session, they gained 0.6 percent, trading recently at $0.77 cents a share. The troubled women's apparel retailer said the recent period included a $5.3 million charge for legal disputes and the investigation into the conduct of its former Chief Executive Dov Charney, as well as $3.1 million for severance costs. Results also included a charge of $4.4 million for a retroactive punitive customs duty settlement with Germany. The company said it's negotiating a $15 million unsecured credit agreement with Standard General it expects to complete in the fourth quarter of 2014. In the recent period, same-store sales fell 7 percent and online sales dropped by 5 percent. The company posted a loss of $19,18 million, or $0.11 cents a share, compared with a year-earlier loss of $1.51 million or $0.01 cent a share. Sales fell 5.5 percent to $155.7 million, from $164.5 million last year. Analysts expected a loss of $0.04 cents a share on revenue of $162.4 million. For 2014, the company forecast $40 million to $45 million in adjusted earnings before interest, taxes, depreciation and amortization.