In an effort to ease the financial catastrophe that has hit the global fashion industry, the UK-based fast fashion retailer Primark has agreed to buy additional stock of finished and unfinished products worth £300 million from its suppliers overseas.
This follows the shockwaves set by major retailers that were reluctant to pay for orders that had been placed early on. Retailers like GAP, Zara, H&M and more have been struggling to keep up with its vendors amidst the crash of consumer demand in the market which has left them cash-strapped.
Primark had announced cancellation of future orders on 23 March and closure of stores worldwide. The company claims that after a discussion with its vendors, they have agreed to buy the stock in order to support the vendors and maintain commitment to them.
The retailer also went on to announce their financial aid system with their suppliers in Bangladesh, Cambodia, India, Myanmar, Pakistan, Sri Lanka and Vietnam to support the workers during the financial crisis which will be adjusted with each country’s financial relief programme.
