Study On Financial Distress Causal Analysis And Prevention Of Chinese Shoes-Clothing Enterprises

The shoes and clothing industry is the pillar industry of Chinese economy,which plays an important role in promoting the prosperity of domestic market,absorbing domestic employment and increasing national economic income.As our country's economy develops,people's disposable income goes up and consumers pay more attention to appearance,Chinese shoes and clothing market is gradually expanding.However,with the continuous expansion of Chinese shoes and clothing market,more and more enterprises are going bankrupt.As financial crisis is the main factor leading to the bankruptcy of enterprises,Chinese shoes and clothing enterprises must pay much attention to the prevention of financial crisis.This paper makes an in-depth study on the causes and countermeasures of financial distress in shoes and clothing enterprises,in order to accelerate the development of Chinese shoes and clothing enterprises.The paper starts with the development status of Chinese shoes and clothing industry,including analyzing the financial distress of shoes and clothing enterprises,and sorting out the specific problems.This paper chooses RN company as the case study object,and analyzes the causes of financial distress of RN company from three aspects.Finally,on the basis of above analysis and combined with the actual situation of Chinese shoes and clothing enterprises in recent years,the paper puts forward some measures to prevent the financial crisis in Chinese shoes-clothing enterprises.Research found that in the new situation of increasingly market competition,the unreasonable business strategy and corporate governance structure are the main problem of RN company.The company couldn't afford matured debts is the direct cause of the financial distress.And the case company has a poor warning of financial crisis because of lack an effective financial early-warning mechanism.In view of the above conclusions,the main preventive measures mainly include making a scientific business strategy,establishing an early warning mechanism for financial crisis,improving corporate profitability perfecting the corporate governance structure and so on.The purpose of this paper is to provide reference for preventing financial distress of Chinese shoes and clothing enterprises,promote the long-term sustainable development of shoes-clothing enterprises.