Just as it announced a big loss in its most recent quarter, Downtown L.A. apparel maker American Apparel Inc. said it plans to raise up to $10 million by selling new shares.

The company on Monday afternoon said it would raise the money over an unspecified period of time, using the cash for general corporate purposes. The company has been losing money at an accelerated clip, reporting quarterly losses in each of the three most recent quarters that were wider than the losses in the same periods a year earlier.

Meanwhile, the company also faces a huge debt load, with long-term debt now standing at about $234 million. Earlier this year, the company delayed its fourth-quarter and annual financial report while it negotiated new terms with creditors.

American Apparel has also had to pay legal bills related to its investigation and firing of former chief executive Dov Charney, as well as the fallout from that move. In its earnings report, also released Monday, American Apparel said it spent $1.5 million on litigation in the first three months of the year.

The company is now the target of a handful of lawsuits. A group of former American Apparel Inc. employees sued the company last month on claims that the downtown L.A. apparel maker violated federal and state labor law, and another former employee has accused the company of religious discrimination related to his firing nearly a year ago.

Monday’s earnings report showed continued bad news for the company. Its net loss for the quarter ended March 31 was $26.4 million (-15 cents a share), compared with a loss of $5.5 million (-5 cents a share) in the same quarter last year. Sales for the quarter were $124 million, down 9 percent from the year-ago period.

American Apparel shares were down 4 percent Tuesday to close at $0.62.

An American Apparel spokesperson did not respond to a request for comment.