Vietnamese garment firm owed debt by bankrupt US fashion giant

By Dat Nguyen   August 19, 2020 | 10:40 am GMT+7
Vietnamese garment firm owed debt by bankrupt US fashion giant
People seen in front of a New York & Company clothing store in New York, U.S. Photo by Shutterstock/rblfmr.

Song Hong Garment Jsc is uncertain if it will be able to collect the VND219 billion ($9.5 million) it is owed by a U.S. company that has gone bankrupt.

It had supplied women’s clothing firm New York & Company, whose parent RTW Retailwinds Inc filed for bankruptcy last month after being hit by the Covid-19 impacts, and plans to close hundreds of stores.

Payment for the consignment has been due for up to three months, according to Song Hong.

It is still trying to recover the money and has not made provisions for it, but said it is not able to reliably estimate the chances of recovery since it depends on the restructuring of RTW Retailwinds.

Orders from RTW Retailwinds last year accounted for 13 percent of Song Hong’s revenues, and up to 25 percent in previous years.

 
 
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