Troubled online sports clothing retailer SurfStitch is considering selling off more of its assets and will close its US office as it expects its full-year loss to double.
The Gold Coast based company sells branded clothing and shoes, including Billabong, Quiksilver, Vans and Converse, online in Australia, Europe, the UK, the US and Japan.
SurfStitch on Monday announced that weak apparel and footwear sales in its key markets, particularly in the UK, will drag it deeper into the red than the $5 million-$6.5 million loss it had forecast in February.
The company now expects a loss of between $10.5 million and $11.5 million for its 2017 financial year.
This is SurfStitch's second downgrade for the year and it sent the company's shares tumbling.
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Shares in SurfStitch were 24 per cent lower at 7.4 cents by 1255 AEST.
The company said it will close its North American warehouse and office by January 2018 and transfer the management of its eCommerce platform Swell from the US to Australia.
"Although, considerable progress has been made in arresting losses in North America, the region will continue to be unprofitable for the foreseeable future ...," chief executive Mike Sonand said in a statement.
Mr Sonand said this would allow the company to focus on its two largest markets, Australia and the UK, while still maintaining a US online store.
He said the group had reduced its cost base and its transformation was going well but the tough retail environment had made it difficult to improve sales and gross margin.
Chairman Sam Weiss said the company was also considering selling more of its business assets to help it deliver positive cash flow.
The company's assets includes a digital surfing magazine called Stab, another site called Magic Seaweed which provides condition forecasts, and an online library of adventure sports videos.
SurfStitch sold its surfboards and surfing equipment business to investment group Gowin Bros for $17 million in December.
The company, founded 10 years ago by Justin Cameron and Lex Pedersen in Sydney, made a net loss of $8.3 million in the six months to December 31.
