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The New York Post reports exclusively that "Suppliers to the off-price clothing chain -- which was acquired by Dubai-based Istithmar in 2006 for $300 million -- have begun to withhold shipments to stores as concerns mount about the retailer's shaky finance."The chain of discount department stores was founded in 1921, and most recently declared bankruptcy in May 1999. There are now 63 stores in 17 states, but competition and the recession, combined with Isthimar's own financial woes, have the chain on the ropes. One "major factoring firm" has stopped extending credit to the company according to the Post, which could imperil the company's ability to keep its stores stocked for the fall selling season.
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