Swedish fashion retailer H&M said it will pay and accept goods that have been manufactured and are in production by its suppliers.
H&M Group is believed to be the first and only retailer to agree to pay its suppliers after the products are manufactured, despite order cancellations.
A spokesman for H&M said that the company will not cancel orders that have started manufacturing.
“Covid-19 spreads around the world at an extremely rapid rate, bringing unpredictable special circumstances to people, communities and businesses around the world. We are actively working across Carry out a series of contingency efforts in a departmental manner, and manage and handle the special situations caused by the epidemic from the perspectives of employees, enterprises and the environment.”
Due to the sharp decline in global demand, H&M said it is reviewing all company business content.
“Under the extreme circumstances of the epidemic, it is necessary to suspend new orders and evaluate potential changes that may occur to existing orders. We will make changes to the ready-made garments that have been produced and those in production. Payment for the delivery of goods to fulfill our commitments to garment manufacturers. We shall pay for these goods and will deliver the payment in accordance with the payment terms in the original contract.”
Since From March 26 to April 4, Bangladesh began a 10-day nationwide blockade, but the government still ordered thousands of garment factories to continue operating.
According to data provided by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), although the border was closed for only a few days, retailers and brand stores have experienced significant losses due to Covid-19. Faced with the difficulties of store closures and declining sales due to the COVID-19 pandemic, the amount of canceled or suspended orders is estimated to be US$2.67 billion, indirectly affecting 1,000 factories in Bangladesh, including 1.96 million workers.
The chairman of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has called on international apparel brands not to delay product delivery or cancel orders, warning that doing so may As a result, factories were unable to pay wages to workers, leading to nationwide social unrest.
