Total Apparel Group has recently come under duress due to lackluster sales.  The results of continued losses have equaled negative cash flows from operations, a working capital deficit of approximately $3.2 million, as well as accumulated losses of $43.5 million since the company’s inception in 2008.


The company recently filed a report with the Securities & Exchange Commission, TAG’s first time doing so. Needless to say, motive behind the procrastination was made apparent once the results were made public. 


“These conditions raise substantial doubt about the ability of the company to continue as a going concern,” the filing said.  The report went on, alluding to recurring negative cash flows from operations, likely resulting in insufficient resources to accomplish the company’s objectives during the next twelve months.


For some perspective, revenues reached $899,914 for the year ended Dec. 31, 2009, versus no sales a year earlier given the company’s recent birth. The loss was $11.9 million against a deficit of $4.1 million a year earlier.


In the six months ended June 30, the loss was $3.3 million against a loss of $6.6 million a year ago. Sales were $64,448 against zero sales a year ago.


Despite the losses, the company said it plans to continue negotiations to settle old outstanding liabilities, as well as look into new financing alternatives such as private placements by way of preferred stock issuances.