Cato Fashions: Philadelphians may have to get used to it
- by admin
The city’s clothing district has a reputation for being a hotspot for fashion.
A new report says it could be changing that.
“We’ve had some changes in the fashion industry over the last few years, which has resulted in a lot of the fashion houses going into debt,” said Karen Aiken, the owner of Aiken’s in the District of Columbia.
“And there’s been a lot more debt being incurred by the retailers.”
So far this year, she’s had to hire new employees, cut down on expenses and spend money on her catering and food operations.
But now, the city is facing a big challenge in its fight against debtors.
“It is becoming more and more difficult for us to keep up with the pace that we need to be going in order to continue to meet the demands of the city,” said Aiken.
“So, we’re going to have to take a very hard look at what the best solution is going to be.”
The city says the debtors are facing more than $50 million in additional debt, a total that could rise to $200 million by the end of the year.
“In addition to that, the district is also dealing with a very serious financial issue, because we’re not only having to pay our employees and our vendors, we also have to pay interest on the debt,” explained City Manager Matt Williams.
He said the district will have to hire more employees to maintain its financial stability.
He also said the city will have a “significant impact” on the clothing business in the future.
“The district is in a situation where we need an infusion of capital and a large infusion of cash to keep it going,” he said.
The city has said it will spend $5 million on capital investments to repair and rebuild the district, including $1 million in capital grants.
The city also plans to spend $100 million on renovations.
The district says it has about $25 million in annual operating revenues and is one of the biggest employers in the city.
The District of Delaware is among the hardest hit cities in the country when it comes to the opioid crisis.
Officials there have taken action to combat opioid addiction.
The city’s clothing district has a reputation for being a hotspot for fashion.A new report says it could be changing…