The stock exchange may take action against fashion retailer Theme International Holdings for its failure to disclose about $10 million in connected transactions. The firm breached listing rules by not making public the transactions with Singapore-based retailing arm Emporium Holdings during the seven months to June 19. The transactions involve Theme selling garments to Emporium and settling Emporium's claims - such as travelling expenses and consultant fees. Emporium, which is under bankruptcy protection, is 55.72 per cent owned by Theme. Under listing rules, the transactions are defined as connected and must be disclosed. 'The stock exchange has indicated that it reserves the right to take further action in respect of this matter,' Theme chairman Kenneth Lai Hin-fung said. The company blamed an 'oversight' for the breach. Anticipating similar transactions will occur in future, Theme has applied to the stock exchange for a waiver, exempting the company from revealing connected transactions. 'The directors consider it will be impracticable for Theme to issue press announcements from time to time,' it said. Theme, which is seeking to restructure $216 million in debts with 18 bank creditors, will delay delivering annual financial statements until October 31. It said the delay would allow Theme to evaluate its exposure to Emporium's bankruptcy protection and the closure of 23 Theme outlets in Hong Kong and Macau.