Some of Factory 2-U's suppliers are getting frayed nerves as it becomes tougher for them to obtain credit for deliveries to the troubled discount apparel chain. Several factoring companies have increasingly had cold feet about orders destined to the San Diego-based retailer, analysts say.
"The supplier community in the New York marketplace has become more anxious" about Factory 2-U, said Richard Hastings, senior retail analyst at Bernard Sands, which advises and approves orders for many of the chain's clients.
Factory 2-U, with 243 stores and more than 4,500 employees, has been struggling for more than a year to control its costs amid a downturn in sales.
