If they closed, I would guess that it is due to cash flow problems. Loads of businesses that on the balance sheet are solvent run into cash flow problems and are forced to close their doors. The average payment is 60 days late. (Every designer I know says that the Japanese are the best to deal with, and that American boutiques generally suck), which puts a major stress on businesses. And stores that go out of business or are floundering will put off paying their vendors (as opposed to say, the rent) as long as possible, since the vendors have remarkably little recourse. So, you could be having great sell through, and still be scrambling for dear life if your stockists are being dicks about paying you. The only real weapon you have is to hold orders, but you would still have essentially written off a crapload of merchandise.