H&M Cancels Orders, But Vows Supplier Payment

As garment makers are impacted by postponed deliveries and work cancellations amid the coronavirus pandemic, H&M noted it would accept shipment of products that have been made already. Firms like H&M have an important function in many developing nations, and the textile industry helps economic expansion, stability and employment in nations that make textiles, The Daily Star reported.

H&M said in a message as reported by the outlet, “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.” The company did not name any supplier from any nation per the report.

The company said per the report, “We will, of course, pay for these goods and we will do it under agreed payment terms. In addition, we will not negotiate prices on already placed orders.” The fashion company sources clothing and textile products worth almost $4 billion from over 230 Bangladeshi manufacturing facilities.

The retailer also said, “At this point, it is necessary to temporarily pause new orders as well as evaluate potential changes on recently placed orders.”

In separate news, H&M had previously publicized that it would tap into its large supply network to help hospitals that need supplies such as gowns and masks in the European Union. The effort was a way for the company to help stem proliferation of the coronavirus. Earlier this month, the fashion retailer said it was trying to figure out what was needed most and how its supply chain could help.

A spokesperson for the retailer said per past reports, “The EU has asked us to share our purchasing operations and logistics capabilities in order to source supplies, but in this urgent initial phase, we will donate the supplies.” H&M had heard that masks were the most pressing need; however, gloves and gowns were also in demand.

The fashion retailer had closed many of its retail locations because of the pandemic, as previously reported, but it has suppliers globally that can help distribute items.