Shipments to Campeau Stores Resume : Retailing: Suppliers had been unable to get financing to send goods to the bankrupt Allied and Federated chains.

Many Los Angeles apparel firms and other key suppliers are resuming shipments to Campeau Corp.’s bankrupt department store empire.

The development is a boon to many suppliers that lost business in recent months when they couldn’t get financing to ship to Campeau’s Federated Department Stores and Allied Stores divisions.

For merchandise-starved Federated and Allied, which sought Chapter 11 bankruptcy court protection last week after being cut off by suppliers, it’s even better news. “They’re beginning to get all the goods they need,” said Corky Newman, president of corporate marketing and licensing for Sunland-based Cherokee Group.

Campeau has no department stores in Southern California. Its only retailing operation here, the financially healthy Ralphs Grocery Co. chain, was not included in the bankruptcy filing. Campeau’s problems, however, have rippled through Los Angeles’ garment industry, the county’s second-largest manufacturing employer.

When factoring companies--firms that provide credit to apparel makers--began withholding financing on shipments destined for Federated and Allied stores in the fall, apparel makers either halted shipments or continued them at their own financial risk.

The biggest factoring companies have not announced whether they will resume credit for Federated and Allied shipments. Suppliers, however, have been buoyed by the news that the department store divisions have gained bank approval for $700 million in new financing by taking advantage of incentives offered to lenders under the U.S. Bankruptcy Code.

Newman said the support from the banks prompted Cherokee to resume shipments to the Campeau stores. He said the stores account for 7% to 10% of Cherokee’s $200 million in annual sales.

Other Los Angeles apparel makers stepping up or resuming shipments were the Jonathan Martin and Leon Max firms.

“We’re approaching it as business as usual,” said Uri Harkham, owner of Jonathan Martin.

Overall, more than 80 of the top 100 suppliers to Federated and Allied stores have begun shipping again or have said they will do so shortly on normal trade terms, said spokeswoman Carol Sanger. “We are way ahead of the schedule we had expected.”

Ostensibly to keep suppliers happy, Campeau stores on Jan. 10 issued checks for roughly $100 million in due bills. Many of the checks bounced, however, when the bankruptcy filing was made five days later and the payments were frozen.

Although some apparel makers privately expressed anger over the snafu, no one on Wednesday said it would get in the way of doing business with the Campeau stores.

The resumption in shipments to Federated and Allied coincided with what was called an unexpectedly busy week for women’s apparel makers displaying their merchandise during a “market week” at Los Angeles’ California Mart. The market week, which showcases local apparel makers’ summer fashions, drew about 9.5% more buyers from retail outlets than last year, the mart said.

Barbara Fields, a Los Angeles-based buyer who represents specialty stores from around the country, said many retailers apparently needed to restock their depleted inventories after holding down their buying for months.

“The retailers were coming in looking for immediate merchandise,” Fields said.

She added that the strong market week bodes well for a number of struggling apparel makers. “Some people we thought weren’t going to make it are hanging in there,” Fields said.

The upbeat news for apparel makers, however, came a few weeks too late for at least one firm. Casadei Group, a dress maker that was one of the leading fashion firms in Los Angeles, is winding down its operations after more than 10 years in business.

Eletra Casadei, the firm’s designer and one of its owners, said that the difficulties the business encountered in recent months dealing with Campeau stores contributed to its demise. Apparel industry sources said the firm also appeared to be torn by dissension following the divorce of Casadei and Rick Lieberman, who also was a partner in the business.

Casadei Group, which until early this month employed about 70 workers, is operating with a skeleton crew of 10 and plans to close in about six weeks.