AAFA appeals for immediate intervention
The American Apparel & Footwear Association (AAFA) has requested immediate federal assistance to relieve economic pressure on retail lending giant CIT Group. In a series of letters to Senator Christopher Dodd, Representative Barney Frank, treasury secretary Timothy Geithner, and others, the association highlighted the pitfalls of allowing CIT to enter bankruptcy.
“In this tough economic climate, US apparel and footwear producers are already feeling a credit crunch,” said AAFA president and CEO, Kevin Burke. “CIT is a critical financial partner to many of our members, many of whom are small- and medium-sized businesses and make a substantial portion of the clothing and shoes worn by hard working American families. In fact, for some members, CIT is the only lending source available. If we fail to act, everyone in the supply chain, including the designer, the manufacturer and the consumer, will suffer.” Mr Burke said.
According to AAFA, CIT represents 60% of factoring in the US apparel and footwear industry.
