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Global Brands Group cancels $4.61m work order from Bangladesh

According to Bangladesh Garment Manufacturers and Exporters Association (BGMEA), western retailer Global Brands Group (GBG) has cancelled work orders worth $4.61 million due to the Covid-19 pandemic. GBG is a fashion accessories and apparel company. Its brand names are like Calvin Klein, Juicy Couture, Frye, Kenneth Cole, Reiss, Sean John, Jones New York, and many more.

These cancellations or work orders on hold, and delayed payment or nonpayment, have forced suppliers to cut jobs at their factories. According to BGMEA data, GBG and its importer Li&Fung have cancelled orders worth $4.61 million from 11 suppliers.

Figure: GBG cancels $4.61m work order from Bangladesh
Figure: GBG cancels $4.61m work order from Bangladesh

One of the supplier, Denim Expert Ltd, is fighting against unethical buying practices and trying to establish workers’ rights. With work order cancellations worth $247,136, this supplier facing a cash crunch to pay his 2,000 workers.

Around 1,150 BGMEA apparel makers and suppliers have seen work order cancellations of $3.17 billion from global retailers and brands, as have many other Asian countries.


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