At a recent meeting with local purchasing offices of foreign brands, BGMEA leaders said that no confirmed orders issued should be cancelled. For companies wanting to delay orders, it forced them to pay for supplies in part so that the factories would have funds to pay staff. BGMEA said factories will be able to keep the products in its own concession to help brands and retailers until businesses are ready to take them.
Bangladesh’s brands and retailers have been cutting back production orders as they face declining competition and closed stores that currently can not benefit from new product shipments. An approximate $100 million in orders in Bangladesh has been cancelled over the past week, these brands and retailers are asking vendors to specify what fabric is ready for production and what is not, and to cancel orders for the latter. In some cases, they have decided to postpone the use of the fabric and in some, they absolutely wash their hands of it. They are also seeking discounts on orders put beforehand.
Some buyers ask their suppliers in Bangladesh if they can afford to pay for the goods they take 30 days later than when they will. In some cases, they decide to make their payments much farther out than that to manufacturers — who are still facing cash flow problems.
Brands and distributors decrease their earnings from production by as much as 75 percent through July, or in some cases through August. And amid attempts and ambitions for corporate social responsibility, most companies have concentrated on saving themselves as times get rough in the midst of the COVID-19 pandemic, ignoring the well-being of the employees who made the clothes to push their earlier successes.
