Sales at men’s heritage brand Wolsey and its stablemate sportswear label Morley fell 32.7% to £3.7m for the year ended 29 February 2016 compared with the previous year.
However, the firm narrowed its losses from £3.1m in 2015 to £1.9m last year.
Managing director Danny Brown left the business in February last year. Eric Deardorff was appointed as a replacement on 14 March but left on 9 November.
“The year has been challenging but has seen a significant reduction in the company’s operating loss and the directors believe that the company has made the necessary progress in the development of the business,” wrote Debra Dooley, who became a director on 24 August 2016, in a filing at Companies House.
The group, which is owned by Jamey Hargreaves, son of Matalan founder John Hargreaves, had net liabilities of £14.5m during the period, up from £12.5m in 2015.
Loans of £11m due to the Hargreaves family will not be due for repayment until the business is able to afford repayment for a period of at least 12 months, the documents said.
The ultimate owner, the Hargreaves family, has provided a letter of support for a period of at least 12 months to enable the company to trade as a going concern, if required.