Pumpkin Patch is scrambling to secure an extension on its $75 million banking facilities.
The childrenswear retailer was scheduled to post its full-year results last week, but has postponed the announcement until September 30.
Pumpkin Patch has instead reduced its forecast earnings to between $11.6 million and $11.8 million, down from the previous guidance of $14 million.
The news caused its shares to hit a record low.
Pumpkin Patch advised it is in advanced discussions to extend its banking facilities.
"When combined with additional impairment adjustments, including further adjustments in relation to under-performing stores, reported after tax losses for the year will now be above the modest level previously advised," the company said in a statement.