The largest source of trapped cash is inventory, particularly the portion that is over nine months old. Nearly half of inventory is slow moving or obsolete, tying up a significant amount of capital while also driving markdown pressure.

Payables present a secondary risk. Thirty percent of payables are past due, which explains strained vendor relationships and tighter payment terms. While extending payables can help short term liquidity, it risks supply disruption if not managed carefully.

With only 35 million in cash and a weekly operating need of 15 million, the company has limited runway. Immediate focus should be on converting inventory into cash, even at the expense of margin, while selectively managing vendor payments to stabilize supply and preserve liquidity.