Troubled retailer American Apparel Inc (APP.A) reported a narrower third-quarter loss, helped partly by lower operating expenses, and said it expects to improve its performance in the fourth quarter and next year.

For the quarter, the company posted a net loss of $7.2 million, or 7 cents per share, compared to a net loss of $9.5 million, or 13 cents per share, last year.

Net sales increased 5 percent to $140.9 million from last year.

The Los Angeles-based clothing chain said its same-store sales rose 3 percent, helped by an 11 percent increase in online sales. It had signed a multi-year partnership with EBay Inc (EBAY.O) in July to create an online lifestyle shop.

The company was reportedly in talks in September to raise as much as $160 million in financing to help it stave off bankruptcy.

The company has been facing a series of troubles, from a long-running sales slump to controversies associated with its chief executive.

Shares of the company closed at 88 cents on Monday on the American Stock Exchange.