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Manufacturers in a fix as brands refuse to pay for completed orders

Clothing manufacturers in developing countries have been left reeling as international brands are refusing to pay for collections that have been completed and in some cases shipped. This has forced factory owners to let millions of their garment workers go, many of whom are young women supporting families.

A recent report by Pennsylvania State University in the United States shows, 80 per cent of factories in RMG manufacturing countries have reduced employment as a result of buyers cancelling orders; nearly 60 per cent have shut down most or all of their operations. Meanwhile, four out of five fired workers haven’t received severance pay, and hardly any fashion brands have offered them financial support.

However, there are some brands that are upholding their promises. Adidas, H&M, Nike, Target and Uniqlo, etc, have committed to paying for orders in full, including those currently in production. On the other hands brands like Arcadia – the owner of Topshop– ASOS, Walmart, Gap, Primark, etc have refused to pay, putting factory workers, mostly women in danger of falling into poverty.

 
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