H&M starts ending business ties with some garment suppliers in Bangladesh

H&M, one of the largest buyers of locally made ready-made garments, has begun ending business ties with some of its suppliers in Bangladesh.

The buyer has already notified more than half a dozen garment factories that it will terminate business with them.

When contacted, the managing director of an export-oriented composite knit textile unit in Bhaluka confirmed that his factory had received such an email from H&M a week ago.

“We have worked with H&M for more than two decades, and now it has informed us that it will no longer source from us,” he told The Financial Express on Wednesday night.

The owner said H&M would, however, receive goods for the current season as well as some orders for the next season.

He said H&M had not mentioned any reason for ending the business relationship.

“We have maintained a good business relationship for the last 21 years, and now we will be in a dire situation, as a good portion of our factory capacity has been engaged in producing garments for H&M,” the owner said.

He also said they contacted H&M immediately after receiving the email but had not received any response yet.

Representatives of H&M’s Bangladesh country office could not be reached despite repeated attempts by phone at the time of filing this report at 10:30pm.

Industry insiders alleged that more factories are on H&M’s list for business termination as part of the buyer’s strategic plan to diversify sourcing away from Bangladesh.

Munni_fe@yahoo.com