Online apparel retailer Bluefly Inc. continues to be in discussions about a possible sale of the company, according to its first quarter 2013 earnings filing.

Discussions got under way in April, with Bluefly disclosing late that month it had secured financing to continue to operate in the face of mounting financial losses.

In its Q1 filing, Bluefly says if the sale, or another alternative, such as additional financing, is not secured, it will not be able to stay in business. Bluefly says it has enough funding to operate through the anticipated closing date. It did not say when that might be. Bluefly also has not said who the buyer might be.

In the interim, Bluefly says it laid off an unspecified number of employees, delayed payments to suppliers and made overhead cost reductions. The retailer also changed its strategy to bolster the connection between its Bluefly and Belle & Clive online brands.

For the first quarter, Bluefly, No. 206 in the Internet Retailer Top 500 Guide, reported:

• Sales decreased 18.5% to $19.8 million from $24.3 million in the first quarter of 2012.
• Sales and fulfillment expenses decreased 14.5% to $4.7 million from $5.5 million.
• Marketing expenses decreased 53.8% to a $1.2 million from $2.6 million.
• Average order size increased 1.0% to $244.97 from $242.58
• Net loss of $4.4 million, compared with a loss of $7.9 million in the first quarter of 2012.