Coronavirus Affects Millions Of Garment Makers In Bangladesh

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The coronavirus outbreak has influenced virtually all areas of the economy, like the fashion industry, which includes been grappling with how to purchase supply orders from garment makers.

The Associated Press is reporting that garment makers in Bangladesh are being let go in massive numbers after $3 billion in orders have already been either canceled or placed on hold.

Some retailers have decided to pay what they owe, but many have not.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) released the info on Monday (March 30) on orders already made or in the works. Bangladesh is the world’s second biggest clothing exporter after China.

The canceled orders are in the tens of millions, you need to include Inditex, C&A, Primark and Marks & Spencer. Labor groups and manufacturers in the united states have already been asking major retailers to stick to their commitments.

Most businesses in Bangladesh have been recently asked to close through the pandemic, but the exports sector has been feeling the consequences for a few weeks now.

About $1.8 billion orders are on hold and another $1.4 billion have already been canceled. Orders from April through December alone cost the industry $1.7 billion.

Clothing company H&M said it had been likely to wait and see about new orders, but can pay suppliers for (and take delivery of) orders which were already made or are in production.

“This is in accordance with our responsible purchasing practices, and not just the case in Bangladesh, however in all production countries,” the business said.

The business that owns Calvin Klein and Tommy Hilfiger, PVH, said that it told suppliers release a invoices on hold since March 18, and later ones will be processed gradually.

If companies payed for orders already being made or for kinds not yet shipped, that could help factories stay solvent.

“PVH and H&M are doing the right thing, in contrast to the long list of brands refusing to pay for goods workers have previously designed for them,” said Scott Nova, executive director of the Worker Rights Consortium.
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