Bangladesh garment industry faces a ”major crisis”
£2.5 billion British retailers are canceling orders
Retailers retain £ 2.5 billion from Bangladeshi factories for sale of Coronavirous dents.The Bangladeshi government says the country’s garment industry, which employs four million people, is facing a “major crisis” as British retailers are canceling orders.An estimated 2.5 billion has been canceled by companies such as ASDA, Arcadia, Debenhams, New Look, Peacock and Sports Direct.
Bangladesh’s Commerce Minister Tipu Munshi has called on the British government to intervene to prevent the closure of mass factories.He said,”Factories could collapse.”They will not be able to pay the original cost and will not be able to run again.
“The UK should also support retailers, so there is stimulus, so they can take this burden to support us.”
British MP, Rushnara Ali is a Member of Parliament for Bethnal Green and Bow, and is also the UK Government Ambassador to Bangladesh.
She wrote a letter to Chancellor Rushi Sunak instructing him to either help or compel the directive.
She argued that companies such as ASDA, New Look, Edinburgh Ulan Mill, Peacock, Sports Direct and Urban Outfitters “are forcing workers to loose their only source of income, putting them and their families at risk of starvation.”
The retailer says it has now reinstated some orders.
A spokesman for New Look said: “We were saddened to have to inform suppliers that we could not place new orders and would temporarily suspend arrears.”We just did it out of absolute necessity.”We’ve started to provide some suppliers where we’ve been able to do that.”
A spokesman for Asda said: “We will and will pay more than 95% of our annual orders in accordance with the existing terms and conditions agreed with the suppliers involved.
“Five percent of the 0% payment orders we can’t take, payable within seven working days, significantly faster than the normal conditions for the fashion industry.”
However, Debenhams went into administration three weeks ago.The company is still trading online but some orders are in the process of being canceled and rebuilt.
According to Debenhams’ latest annual report, it is the source of 67 factories in Bangladesh that employ 165,000 people.Debenhams told us it was a tough decision to make and was trying to be as smooth as possible.Not everyone is canceling.Last week Primark announced that it would provide it for every garment it ordered.The decision will cost the company hundreds of millions of pounds.
In Bangladesh, factory owners hope that other retailers will either be inspired or compelled to do so.-Source ITV