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The Financial Express

Top apparel brands to take delivery of goods

Sigh of relief for local suppliers


MONIRA MUNNI | Published: April 01, 2020 10:39:29 | Updated: April 02, 2020 12:00:46


Top apparel brands to take delivery of goods

A number of top global apparel brands on Tuesday assured their local suppliers that they (brands) would receive shipments of goods already produced, sources said.

The buyers include M&S, Target, Inditex, Kiabi and PVH, they said, adding that another brand H&M, one of the largest buyers, gave a similar assurance earlier, which came as a sigh of relief for local suppliers amid coronavirus pandemic.

On March 29, Swedish retailer H&M announced that it would take delivery of the garments already produced and the goods in production without asking for any discount and pay for the orders.

The clothing retail company, however, said it suspended placing new orders temporarily and would again place orders once the coronavirus situation improves.

The assurances came at a time when 1,048 local garment makers reported that export orders for 907.14 million pieces of garments worth $2.87 billion have been cancelled or put on hold as of Tuesday due to the Covid-19 pandemic.

When contacted, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Dr Rubana Huq said, "Some brands, namely H&M, PVH, Inditex, M&S, Kiabi and Target, have come forward and informed us of their decision to take the delivery of ready goods and the goods in production."

Welcoming their decision to support local suppliers, she also expressed the hope that the payment terms would remain unaffected, thereby ensuring liquidity flow to the factories.

When asked, Mahmud Hasan Khan, managing director of Rising Group, told the FE that Kiabi confirmed that it would receive goods from all their suppliers in Bangladesh.

Kiabi put on hold nearly US$1.0 million worth of shipments due to the shutdown of its stores in France amid coronavirus pandemic.

"Now it has confirmed that it will take all the goods and if the company can't sell the products in the upcoming season, it would sell in the next season," said Mr Khan.

Munni_fe@yahoo.com

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