The American Clothing And Footwear Association Calls For Federal Aid To CIT.

The United States clothing and Footwear Association (AAFA) called for immediate federal assistance to the retail loan giant CIT group to ease the upcoming financial crisis of the CIT group. The Association sent a series of letters to senators Christopher Dodd, Vice Finance Minister Geithner (Timothy Geithner), and others, highlighting the hidden dangers of CIT, which may lead to bankruptcy.

Mr. Kevin Burke, President and chief executive of AAFA, said: "in the difficult economic climate, American clothing and footwear manufacturers have already experienced the credit crunch. CIT is an important financial partner of many of our members. Many of them are small and medium enterprises. They produce quite a lot of clothes and shoes for the families who work hard in the United States. In fact, some members believe that CIT is the only source of loans for these small and medium enterprises. "

Burke said: "if we do not act, everyone in the supply chain will suffer losses, including designers, manufacturers and consumers. I call on Washington leaders to act quickly to provide assistance to the CIT group, because the lender involves every consumer in the United States.

CIT constitutes a 60% factoring business in the clothing and footwear industry of the United States. If disruption occurs due to bankruptcy, it may have a serious impact on manufacturers, and they will immediately lose consumer trust. Because these manufacturers enter the key months of autumn sales season, capital chain breaks will lead them to be unable to pay for overseas production enterprises. If overseas production enterprises fail to get the payment in advance, they will further weaken the confidence of overseas markets in the US economy.