Shares in the Pumpkin Patch have fallen 12 percent after the children's clothing retailer failed to find a suitable buyer.
The company's stock fell 3 cents to 22 cents each.
In March, Pumpkin Patch sought proposals from those interested in recapitalising or buying the company.
But it said the offers received failed to satisfy the board, and Pumpkin Patch would focus on improving its financial performance.
The company said it was on track to deliver an underlying full year operating profit of about $14 millions, and meet its targetted reductions in debt and inventory.