Teenage girls fashion retailer Delia's (DLIA) is seeking buyers as it faces mounting losses and a drop in same-store sales. The retail store and catalog company is tapping private equity firms to gauge their interest, as well as weighing other options like raising capital, according to a New York Times report.

Delia's interest in finding a buyer comes as its net losses climbed to $22.3 million for the first nine months of last year, compared with net losses of $9.6 million for the same period a year ago. The company says it's looking to shave off $10 million in annualized expenses in fiscal 2011, which may help attract prospective buyers.

Although Delia's and other fashion retailers are facing a challenging environment amid a weak economy, the company has managed to improve its sales performance at stores opened at least a year, with same-store sales declining 0.4% in the fiscal third quarter, compared with a decline of 3.6% a year earlier. The retailer's sales performance has improved since August through at least November, according to its third quarter report.