Ross Stores Halts New Inventory Purchases Through Mid-June

Discount fashion retailer Ross Stores (NASDAQ: ROST) has cancelled all purchase orders for inventory from its vendors through June 18, according to a report by Reuters. The company is also extending its terms on all existing merchandise-related accounts payable by 90 days. Per Reuters, the organization stated the following in a letter sent to suppliers: "This is the first time in our history that we are unable to deliver exceptional merchandise to our customers."

The action comes days after the Ross decided to close all of its stores for two weeks until April 3, and also follows a complete drawdown last week of its $800 million revolving credit facility to buttress its cash on hand.

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Source Fool.com