CIT Group Files for Bankruptcy

The CIT Group filed for bankruptcy over the weekend, which again spells more bad news for the fashion industry. CIT was the one of the USA’s largest lenders to retailers. More importantly, it advanced loans to more than 60% of US apparel makers.

Three months ago, the US government denied CIT a bailout because it felt CIT was small enough to let fail. Nevertheless, this bankruptcy filing will affect a critical mass. Relatively few companies offer factoring services, a type of lending that CIT provides. Experts say other lenders are unlikely to be able to scoop up the demand for factoring in CIT’s wake — that leaves many small businesses in the fashion industry out of funds for the next few seasons. Companies such as Trina Turk are likely to be affected.

TrinaTurk

CIT's bankruptcy spells trouble for US retailers (Photo Credits: Trina Turk)

This entry was published on November 2, 2009 at 7:19 am. It’s filed under Uncategorized and tagged , , , , , . Bookmark the permalink. Follow any comments here with the RSS feed for this post.

4 thoughts on “CIT Group Files for Bankruptcy

  1. rueben on said:

    business figures numb my mind. more pictures please =)

  2. saythefword on said:

    haha yah lah yah lah tonight i find you more

    pfyg

  3. rueben on said:

    sorry very headache ah contract need to see more nice pictures rather than read this type of headache articles spewing with specialist knowledge.oh and how was the blackmarket show? you get invites from linda hao ah?

  4. saythefword on said:

    hellooooo i made it how simple already!! in my typical ahlian fashion okzzz!

    blckmkt show was alright — you should ask denise about it. don’t have any pictures though. we got the invites from… aaron?

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