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


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