Blog: Leonie BarrieApparel firms face new cash squeeze

Leonie Barrie | 16 July 2009

As if trying to contend with a downturn in consumer spending wasn’t enough, US apparel firms now have to face the very real prospect of their credit and cash flows drying up too – potentially leaving retailers with a shortage of merchandise during the crucial back-to-school and holiday seasons.

CIT Group, the largest factoring firm to the apparel sector, is preparing to file for bankruptcy after hopes of a government bailout came to an end.

And as well as sending shockwaves across the industry, the lender's demise could start a chain reaction that would see thousands of small and medium-sized companies forced to cut costs, lay people off or shut down.

COMMENT: CIT financial woes add to US apparel pain


BLOG

Why digital supply chains are top of mind

Confirmation that digital supply chains are top of mind for apparel industry executives came last week with the latest plans from global sourcing specialist Li & Fung....

BLOG

Navigating global political frictions and economic uncertainty

As a barometer of the issues top of mind for apparel sourcing executives, it is hard to beat the annual Prime Source Forum in Hong Kong. ...

BLOG

Trump and Brexit generate more confusion

Over the past month, Donald Trump and his team failed to offer any clear plan to ensure Americans would "Buy American, Hire American" - while the British government's attempts to clarify the specifics...

BLOG

Bangladesh works to resolve labour activist issues

The Bangladesh government was forced to respond late last week to pressure over its crackdown on labour activists after a number of global brands and retailers, including H&M and Inditex announced pla...

just-style homepage



Forgot your password?