Top 40 supplier American Apparel (asi/35297) announced this week that it is short on cash and has begun to explore financing and restructuring options. While the public company didn’t submit a complete second-quarter report, it said in a public filing that falling sales and profits throughout the first half of 2015 have impacted its ability to continue normal operations.

The apparel retailer and wholesaler painted a gloomy picture in the filing about its cash and financing position. It said that it “currently does not have sufficient financing commitments to meet funding requirements” for the next 12 months without raising more money. “There can be no assurance that it will be able to raise such additional capital or refinance its obligations.”

To try to remedy the situation, American Apparel said it was consulting advisers and “certain key financial stakeholders” to “analyze potential strategic and financial alternatives.” That could include raising new capital, as well as amending or restructuring existing debt, which it said it is currently in talks to do with at least one of its lenders, Capital One.

Further, American apparel said that its sales declined 17% in the second quarter, which was worse than the company’s 9% first-quarter drop. For the first half of 2015, revenue was down 14% to $259 million, while its net loss more than doubled to $45.8 million from $21.7 million a year earlier. Amid the difficult news, the company’s stock (NYSE:APP) price fell by more than 35% yesterday to close at 13 cents. The stock has fallen by 87% this year.

The company’s wholesale division – which includes sales within the promotional sector – has been a bright spot for American Apparel, though, as it increased sales by .6% in the first quarter. Also, American Apparel ranks number 14 on Counselor’s Top 40 supplier list, after it reported 2014 North American ad specialties sales of $105.2 million, a 6% increase over the prior year.