Swedish retail giant H&M assured its garment suppliers of taking shipment of goods that have already been manufactured
In the face of the rapid spread of the COVID-19 around the world, H&M has put a temporary pause on placing new orders from Bangladesh. However, the H&M will maintain its commitment and take delivery of goods in production.
We will stand by our commitments to our garment manufacturing suppliers by taking delivery of the already produced garments as well as goods in production. We will of course pay for these goods and we will do it under agreed payment terms, said the H&M.
In addition, we will not negotiate prices on already placed orders, it added.
Meanwhile, it will evaluate potential changes in recently placed orders. In a statement sent to media, H&M informed their decision on Sunday.
“The rapid spread of the COVID-19 around the world has caused an exceptional situation for people, communities and businesses around the world. It will also, of course, have a huge impact on millions of garment workers in countries highly dependent on the textile industry,” said the retail giant in a statement.
The situation has a significant impact on our whole company, including our supply chain. As a consequence of the substantial drop in global demand, we are now reviewing all parts of our business, it added.
We are carefully scrutinizing and evaluating how to adjust and mitigate the negative effects when it comes to our supply chain and the textile workers, said the retailers.
In the given context, “We will continue to value the relationship with our suppliers, but in this extreme situation we need to respond fast and take decisions that can be difficult in the short-term, but necessary in the long-term.”
At this point, it is necessary to temporarily pause new orders as well as the existing orders. But we will start placing orders again as soon as the situation allows, it added.