The trend of order cancellations by the global buyers which has put the readymade garment manufacturing industry of Bangladesh in a tight spot continues unabated and now it has emerged that one of US’s largest apparel retailer has cancelled work orders worth a staggering US $ 50 million placed with various suppliers in Bangladesh.
According to a report published in The Guardian, clothing retailer Kohl’s has cancelled the orders placed with different garment factories in Bangladesh on 22 March.
Subsequently, the company went on to reportedly pay dividends to its shareholders to the tune of US $ 109 million.
Another country apart from Bangladesh which has had to bear the burden of order cancellation is South Korea.
Kohl’s allegedly cancelled orders worth US $ 100 million placed with suppliers in South Korea.
Criticising Kohl’s actions, the founder of the Bangladesh Centre for Worker Solidarity, Kalpona Akter reportedly underlined that names like that of Kohl’s use their name and brand image to talk of issues like ethical sourcing and claim caring for the garment workers, which in reality is not true, she said.
It may be mentioned here that Bangladesh is struggling with large-scale order cancellations by global buyers and dwindling volume of fresh work orders.
In June, new work orders from the global buyers fell by around 45 per cent compared with that in the corresponding period of last year, as per reports.
