Postie Plus Group is still battling declining sales as it tries to claw back market share.
The group's first quarter sales dropped 14% to $15.9 million compared with the same period a year ago.
It recently announced a full year loss and declining sales.
Group chief executive Richard Binns says the first quarter sales decline has affected the core Postie Plus business of men's, women's and children's clothing.
He says problems with its supply chain caused a loss of market share subsequently the company has been trying to claw back sales.
However, Mr Binns says sales have improved in the last few weeks, due partly to Christmas spending and changes to the Postie Plus marketing strategy.
The group is selling its school uniform operation SchoolTex for $9 million which it says should bring its debt down to just over $12 million from $21.1 million.
Mr Binns says Postie Plus is also looking for capital raising opportunities..
