// H&M to pay suppliers in full for orders fulfilled, but halts new orders
// H&M also reportedly said it would pay for the goods ordered under the original terms agreed
H&M has reportedly told suppliers they will receive payment for the orders they have already fulfilled or started, but like most other fashion retailers it will pause all new orders.
The news comes amid an increasing number of fashion retailers globally that are starting to cancel or delay payments for orders of garments they have no hope of selling due to lockdown measures from the coronavirus pandemic.
Several reports quoted the Swedish fashion giant as saying “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”.
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H&M also reportedly said it would pay for the goods ordered under the original terms agreed, without any discounts sought.
The news provides a glimmer of hope for garment manufacturers, especially since H&M reportedly sources around $4 billion worth of clothing and textile products each year from more than 230 manufacturers in Bangladesh.
There are fears of a humanitarian crisis erupting in Bangladesh as the country’s garment sector reels from the impact of store closures and cancelled orders globally.