Retailers withhold £2.4bn from Bangladeshi factories, documents show

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Around £2.4 billion of contracts in Bangladesh have already been cancelled by a few of the UK’s biggest traditional retailers, according to documents seen by ITV News.

The figure was reported by the Bangladesh Garment Manufacturers and Exporters Association.

Companies including Asda, Sports Direct, New Look, Arcadia, Peacocks and Urban Outfitters are named as some of these that contain cancelled orders.

Bangladesh has been particularly hard hit by the coronavirus lockdown, with an increase of than a million employees in the garment industry already considered to have lost their jobs.

Last week, Primark said it could be honouring contracts, despite remaining closed, putting pressure on rivals to follow suit.

Supermarkets including Morrisons and Marks & Spencer have launched campaigns to make sure UK dairy farmers are supported through the lockdown.

Bangladesh commerce minister Tupi Munshi told ITV News: “My message to them is merely don’t forget us, be there, help us out and make an effort to do something therefore the factories can survive, therefore the factories can produce their goods.”

Rushanara Ali, the UK’s trade envoy to Bangladesh, has written to Chancellor Rishi Sunak naming the retailers and calling to allow them to purchase work already completed.

Ms Ali said: “These businesses, amongst others, have refused to pay what amounts to £2 billion-worth of contracts to garments companies in Bangladesh, leaving millions of folks unemployed and their own families at risk - and which means millions of people could lose their lives not as a result of the virus but starvation, and that's unacceptable.”

Peacocks owner Edinburgh Woollen Mill confirmed it had cancelled some orders from Bangladesh, but did not say how many.

Some suppliers will be paid only after the clothes can be purchased, others are certain to get half of what they are owed.

New Look said it had cancelled 20% of orders from Bangladesh, securing to £6.8 million, although it told ITV News it has reinstated some orders.

A spokesman said: “We regrettably had to see suppliers we're able to not place new orders and will be temporarily postponing outstanding payments. We only did so out of absolute necessity. We have started making some supplier payments where we are able to do so.”

Asda said 5% of orders from Bangladeshi suppliers would not be met, nonetheless it would pay 60% of the agreed price.

A spokesman said: “We've and will be spending money on over 95% of our total annual orders as per the existing conditions and conditions agreed with the suppliers involved.

“The 60% payment is for the 5% of orders we aren’t in a position to take, payable within seven business days, drastically faster than usual conditions for the fashion industry.”

Sports Direct, Arcadia and Urban Outfitters didn't answer requests for comment from ITV News.
Source: https://www.expressandstar.com

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