CIT Peril Puts Industry at Risk

The industry is facing potential turmoil after CIT Group Inc., which provides basic financing for thousands of small- and midsized apparel retailers and vendors, saidit probably won’t be rescued by a federal bailout. After days of intense negotiations, the New York-based commercial lender said there was “no appreciable likelihood of additional government support being provided in the near term.” The company said it was “evaluating alternatives” with its advisers. The disclosure raised the possibility of a bankruptcy filing by the financial giant and left many vendors and retailers in limbo about how they’ll finance their fall shipments and finance their businesses. The crisis adds another nightmarish facet to California’s economic woes. (Click for more CIT history and facts.)
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