H&M halts placing orders in Bangladesh

Swedish clothing retail company H&M has decided not to place any import orders in Bangladesh for now due to the adverse impact of the coronavirus (COVID-19) outbreak on the global economy.
Although the retailer would not place new orders at present, it would take delivery on the orders already placed, according to the sources.
H&M country manager Ziaur Rahman on Sunday admitted that the European fashion brand decided not to place any new orders in Bangladesh but it would not cancel any orders that had already been placed.
He said that many of global buyers were cancelling their orders which they had placed in Bangladesh due to the epidemic, but the H&M was committed that it would not cancel the orders already placed.
‘We are putting a pause on upcoming orders but when the situation looks up the retailer will place further orders,’ Zia said.
He also said that H&M would allow all the shipment against orders that had already been placed and would pay as per the agreed payment terms.
Earlier, H&M had put a limit on its operations in Bangladesh office as a precautionary measure following the identification of coronavirus-infected people in the country on March 8.
Meanwhile, Bangladesh Garment Manufacturers and Exporters Association informed that around 1,025 RMG factories reported export orders worth $2.81 billion cancelled/held up affecting 2.06 million workers as of 29 Sunday.
The country’s earnings from readymade garment exports stood at $34.13 billion in the financial year 2018-19, which was nearly 83 per cent of the country’s total export earnings.
More than 40 lakh workers work in nearly 4,500 export oriented readymade garment factories across the country. (Source: New Age)