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North American Retailers’ group cuts ties with more Bangladesh RMG units

The North American retailers’ group has cut out 17 more readymade garment factories of Bangladesh from its supplier list. The reasons being cited are either charge of failure to make adequate remediation progress or closure or relocation of some units.

So, now the number of readymade garment factories with which the Alliance for Bangladesh Worker Safety, the platform of the North American brands, cut business relations due to noncompliance reached to 59. The total number of RMG factories in which global buyers cut business relations reached to 72 with 13 factories terminated by the European retailers’ group — Accord on Fire and Building Safety in Bangladesh.

BGMEA leaders are likely to sit with the Alliance on April 4 to discuss inspection-relates issues including escalation process. According to an Alliance announcement, 17 factories have been suspended from its supplier list due to their failure to comply with review panel’s recommendations, closure or relocation and unethical behaviour by factory management.

BGMEA vice-president Mahmud Hassan Babu has gone on record saying that the announcement by the retailers’ groups might affect business of these factories with others. Reports, however, suggest that the factories suspended by the retailers’ groups are doing business with a number of buyers who are not signatory of the Accord or the Alliance.

 
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