Dive Brief:

• American Apparel has slowed payments to its suppliers of yarn and fabric, which is worrying to factoring firms that may be called on to cover its invoices, according to the New York Post.

• The retailer last week also instituted a factory slowdown, affecting three southern California facilities and potentially creating a dearth of spring fashions, according to the Post.

• The retailer says its liquidity is better than it has been in a while and that its factories are running as usual.

Dive Insight:

American Apparel is stumbling hard after months of rough going that began with the high-profile and expensive ouster this summer of its founder Dov Charney as CEO. With all the work that has gone into containing the drama and moving on, it’s really not over yet. Charney is reportedly seeking a return to the retailer in some capacity after his final firing last month. That might be that much more of distraction not conducive to turning things around, unless any deal he manages to cook up includes enough cash to keep stores supplied and vendors paid.