Internatıonal Fashıon Chaın Postponds Payıng Bılls

- International retail chain American Apparel had been delaying payments to key suppliers, to avoid a cash crunch following a lackluster holiday season, despite strong recovery signals seen in the US economy.

The company has postponed making payments to suppliers by as much as 60 days, according to a report in The New York Post. The company has also cut back on the hours of its workers at its Los Angeles factory.

The latest problems are said to be the result of poor sales over the Christmas season. Vendors for the yarn and fabric that the retailer needs to churn out its hipster fashions were being turned away by some of the so-called "factoring" companies that finance shipments to its California factories, said in The New York Post report, refering "some insiders".

American Apparel’s "liquidity is better than it has been in a very long time" a company spokesman said in a statement. A recent holiday sales promotion was "on track" the spokesman added.

American Apparel "has had great feedback from its vendors over the past two months about the progress it has made improving the accounts payable function and they expect continued improvements in the weeks and months to come" the spokesman noted.

American Apparel operates largest garment factory in the U.S. The compeny's first retail store opened in 2003 and now have over 260 stores worldwide in 19 countries including, Canada, Mexico, Brazil, United Kingdom, Spain, France, Netherlands, Germany, Sweden, Italy, Austria, Israel, China, Korea, Japan, Australia, Hong Kong and Switzerland.

American Apparel regularly uses its billboards, advertisements, press contacts and even printed t-shirts to speak out about important issues. "Our two biggest issues have been Immigration Reform and Gay Rights" said the company on its web site.