When U.K. Billionaire Philip Green’s Topshop Cancels Orders, Manufacturers Feel The Pain

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When U.K. Billionaire Philip Green’s Topshop Cancels Orders, Manufacturers Feel The Pain
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A workers advocacy group has accused Green of passing on the financial burden of the coronavirus crisis on his clothing retailer to garment workers who earn less than a dollar an hour after it cancelled orders for goods already made and shipped.

... [+]NurPhoto via Getty Images

U.K. politicians are now entering the fray as one of the countries most affected, Bangladesh seeks to make clear just how poorly its workers have been treated by U.K. retail giants during the pandemicthat although some owners of clothing retailers have acted responsibly during this crisis to protect their workers, others have not and are now putting the lives of garment workers at risk.

However, Next, a large U.K. chain of 500 stores listed on the London Stock Exchange, confirmed to shareholders in late April that orders made before an April 10 cut off were paid in full, on normal payment terms. Next has cancelled clothing stock orders with a wholesale value of $356 million for this season but will compensate the suppliers affected, “to help cover the cost of fabric or similar components.

Topshop’s Fashion Footprint team did not respond to a request for comment, and Arcadia has offered no statement addressing the allegations that by cancelling orders Arcadia has pushed the financial burden down the supply chain and onto the garment makers.... [+]Advocacy group Labour Behind the Label describes the impact of the cancelled orders as “huge” in the countries where making clothes for U.K. shops is a significant slice of the economy.

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