Fashion is looking to line up some insurance from the Trump administration.
A group of 22 trade organizations — including the American Apparel & Footwear Association, the Council of Fashion Designers of America, the National Retail Federation and the Retail Industry Leaders Association — called on the government to establish “an emergency, temporary federal commercial trade credit insurance backstop.”
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Vendors can typically buy insurance to make sure they get paid for shipments if the retailer goes under. They can also borrow against their accounts receivables if they’re insured.
But since the coronavirus effectively shut down retail in March, much less insurance is being offered and more retailers than ever have filed for bankruptcy — including Neiman Marcus Group, J.C. Penney Co. Inc. and J. Crew Group.
The watchlist of struggling retailers is growing longer, too, with Ann Taylor parent