GarfieldMarks LLC, which has put itself up for sale, cannot make payroll, according to sources close to the company.

Employees have not been paid in three weeks — missing a Dec. 8 payday — and the apparel firm told workers it cannot pay them until the company is acquired, sources said.

This story first appeared in the December 18, 2006 issue of WWD. Subscribe Today.

GarfieldMarks management declined comment.

As reported, LF 1937 Ltd., a division of Li & Fung, and Rousso Apparel Group, a $200 million predominantly moderate vendor, are in negotiations to buy GarfieldMarks, which has changed hands three times since it was founded in 1993. After peaking in the Nineties at revenues of $60 million, GarfieldMarks’ sales have fallen to less than half that in recent years, according to industry estimates.

The potential deal, which sources said was shaky and which had not been finalized as of Friday, follows September’s $12 million purchase of Harvé Benard Ltd. by Wellington Capital Group, a New York-based equity firm. Harvé Benard shared back-office facilities with GarfieldMarks, and six members of Benard’s management own GarfieldMarks. Welllington Capital passed on buying GarfieldMarks both in September and again more recently, according to Joseph Gabbay, chief executive officer of Wellington Capital Group.

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