Buyers say reinstatement of cancelled orders not possible as stores are closed in Europe; Primark mulls floating low-cost loan for suppliers to address the present crisis.
As COVID-19 tightened its grip in West, especially Europe, it has forced all major brands and retailers to wind-up operations temporarily, close down stores and resort to large-scale order cancellations.
This had a tell-tale impact on the garment manufacturing nations like Bangladesh, which is now struggling to keep afloat.
Keeping the same in perspective, a crucial meeting was held between the stakeholders – European Union (EU) representatives, buyers and industry leaders – in Dhaka on Sunday, to discuss, deliberate and formulate a feasible roadmap.
As per sources, all important industry leaders, buyers’ representatives and those from the EU took part in this discussion.
“In the discussion, it was conveyed to us by the concerned authorities/representatives that as around 99 per cent of the stores in Europe are closed currently due to the Coronavirus outbreak, it would be difficult to reinstate the cancelled orders,” underlined Rakibul Islam Khan, Managing Director of Pakiza Knit Composite Limited speaking to Apparel Resources.
Primark, which sources a substantial amount of its apparel requirements from Bangladesh, has reportedly decided to set up a fund, from which its supplier factories can avail loans on low interest rates, to deal with the current situation.
Meanwhile, as per another source, who spoke on condition of anonymity, the EU has reportedly come forward to help the worst-affected garment workers in the country and are working on hammering out the nitty gritty of the same.
The industry leaders also informed Apparel Resources that both the buyers and the EU representatives have asked the industry to exercise caution and take an informed decision on the issue of resuming operations, keeping in mind the existing Coronavirus scenario in the country.
