The fashion industry is built on the creativity and innovation of independent designers and brands. These businesses, many of which are small and emerging, rely on fair and timely payments to sustain their operations, invest in future collections, and support their teams. Yet, delays in payments from retailers place an increasing financial strain on designers, threatening the industry’s very foundation.

As the organization representing American fashion, the CFDA firmly supports designers and brands in their quest for sustainable and equitable business practices. Retailers and designers are inherently connected—each plays a vital role in the success of the other. When payments are delayed, designers encounter significant operational challenges, from covering production costs to paying factories, suppliers, and employees.

To ensure a thriving fashion ecosystem, it is essential that retailers maintain clear and equitable payment terms that demonstrate the mutual reliance of both parties. Independent designers serve as the backbone of the luxury and contemporary markets, and their financial stability must not be jeopardized. A commitment to timely payments enhances the industry as a whole, promoting an environment where creativity and commerce can flourish together.

The CFDA stays dedicated to promoting fair business practices and assisting both designers and retailers in cultivating a stronger, more sustainable fashion industry. By collaborating, we can create a future where designers are empowered to concentrate on what they do best—creating and innovating—without the weight of financial uncertainty.