A: Should retailers be worried about CIT Group’s potential bankruptcy? Who will be hurt if they file?
A: CIT, as a major factor, is deeply entrenched in the apparel industry. It plays a part in fabric procurement, manufacturing and financing of shipments to retailers. If CIT files for bankruptcy, it could potentially impact 30 to 40 percent of apparel financing. There is already concern about fabric availability for holiday. Even a restructured CIT would likely create even more credit pressure than is now being felt.
Date answered: 07/17/2009
Question raised by: HS