In the last four weeks, suppliers have drawn attention by hundreds of messages voicing concerns and complaints directed towards the Coronavirus Support Desk of Turkish Clothing Manufacturer’s Board:
Several companies have informed suppliers that future orders will not occur without further notice. It will allow producers to pay work and labor expenses for an indefinite period of time on their own. For some of the products, production was halted in the pipeline and, instead, discounts or cancelation for goods in the pipeline were solicited in some cases. Finally, some companies have demanded an extension of the terms of payment for shipped goods on their way to or in the shops.
Stoping the production of high volumes at the start of the season means that big orders create huge factory inventories. In addition to production costs, producers are entirely responsible for products that are approved by brands alone, which present an existential danger to most of the businesses operating within one-digit margins. When brands do not help their suppliers meet the minimum commitments, suppliers can not pay the wages of their workers and protect their livelihoods
