A group of 22 trade organizations — including the American Apparel & Footwear Association, the Council of Fashion Designers of America, the National Retail Federation and the Retail Industry Leaders Association — called on the government to establish “an emergency, temporary federal commercial trade credit insurance backstop.”
This strain on the retail side of the industry — coming on top of the general nosedive in business, canceled orders and an uncertain future — is expected to clamp down hard on apparel producers, particularly the smaller players that haven’t been able to raise new money to buttress their balance sheets. The AAFA in particular has been banging the trade credit drum.
The hope is that the administration has some authority under the CARES Act to step in, allowing for quick action. Otherwise, Congress would need to pass new legislation. Many more groups are taking up the call as the industry starts to look more to the back half of the year. The letter, dated Tuesday and sent to Treasury Secretary Steven Mnuchin, Commerce Secretary Wilbur Ross and Federal Reserve chair Jerome Powell, also had the support of the Accessories Council, the California Fashion Association, the Fashion Jewelry and Accessories Trade Association, the Outdoor Industry Association, Sports & Fitness Industry Association and the U.S.
“The spring and early summer are critically important for our supply chains in anticipation of the upcoming holiday season. Ordering for the fall is already starting to begin,” the groups pointed out. “A failure to fully restore credit to the supply chain now could extend the severe economic drag from the last few weeks of shutdowns well into the next year, harming millions of Americans who depend on these supply chains for their livelihood.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: CNN - 🏆 4. / 95 Read more »