Things are far from “normal” for apparel manufacturers in Bangladesh, which attributes 80 percent of its exports to the sector.
Monday saw throngs of shoppers in England’s high streets, but it’s a stark reality from the distant supply chain workers and factory owners — many still holding out for payment from those same retailers, perhaps on declining hopes.
Despite Western retailers sliding up their gates and opening doors to shoppers, things are far from “normal” for apparel manufacturers in Bangladesh, which attributes 80 percent of its exports to the sector. But COVID-19 is a different beast entirely and is one that continues to claw away at the Bangladeshi garment manufacturing industry — with little aid from Western brand partners. “Following the COVID-19 outbreak, I was shocked by the change in attitude and tone of the companies who have acted to protect themselves financially with scant regard for the effects that their decisions might have upon their manufacturing partners, myself included,” said Uddin.
As early as February, Li & Fung/GBG received invoices from Denim Expert Ltd. for some $415,000 worth of goods in terms originally agreed upon in “payment at sight” — but payment has still not been received months later. In late March, the company canceled orders for goods for which Denim Expert Ltd. had already procured materials as well.
Arcadia offered a letter of cancellation for its orders with Denim Expert Ltd. at a total value of nearly $2.5 million. In April, the group offered to pay at a 30 percent discount, to which Uddin — faced with little alternative — agreed, as goods were already at a U.K. port.
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