TJMaxx yet to sharp dues of Bangladeshi suppliers
News of garment work buy cancellations and holdups and deferred obligations became commonplace when pandemic struck.
But as time passes, the brands and vendors came to an understanding with their suppliers, with some reinstating orders or paying what it owes.
One retailer that has fallen foul of ethics is TJMaxx, among the largest clothing sellers in the US.
It is not paying its Bangladeshi suppliers their dues, although its mother or father company paid a substantial amount of dividend to its shareholders during the pandemic.
The TJX Corporations, the parent company of TJ Maxx and Marshalls that also got US government credit for COVID-19, distributed $480 million to its shareholders recently.
TJMaxx has been sourcing garment items from few Bangladeshi factories and it has cancelled work orders with them using the proverbial excuse of a good drop in revenue and closure of stores during the pandemic.
It pushed to reopen stores amidst the pandemic in May, which resulted in reopening of 85 % of its retailers by mid-June. It possibly had increased sales in May than this past year.
"So far, two hometown suppliers said that TJMaxx cancelled job orders with them as a result of the pandemic," stated Faisal Samad, vice-president of the Bangladesh Garment Suppliers and Exporters Association (BGMEA).
The company cancelled work orders of 12,000 units of garment items worth $ 85,950 and held up payment for 17,700 units of garment work orders worth $125,000 with another native supplier.
"We don't have information on how several cancelled items been reinstated," Faisal Samad told The Daily Celebrity over the telephone yesterday.
Samad, however, said more local suppliers may supply merchandise to the TJMaxx, but so far, the BGMEA gets the information on several suppliers.
A good senior official of 1 of the suppliers seeking anonymity said recently the TJMaxx has reinstated the cancelled work orders as the amount was not too much. The Daily Star cannot contact the other dealer.
TJMaxx's net sales found in the first one fourth of its 2021 financial year stood at $4.4 billion. Stores were shut for 1 / 2 of the quarter for the pandemic, according to a press release of TJMaxx.
"The company is comfortable that it currently possesses sufficient liquidity for the rest of the entire year," it said in the news release.
"Although it's still early and the retail environment remains to be uncertain, we've been encouraged with the strong sales we've seen with our preliminary reopening," explained Ernie Herrman, ceo and president of The TJX Businesses.
And yet, the business isn't paying its suppliers in Bangladesh.
Contacted, Erika Tower, vice-president of global communications of TJX, explained: "We value your interest. That said, at TJX we take a quiet procedure and wouldn't possess anything to add to your story. We expectation you understand."
Meanwhile, Samad said 45 % of the cancelled work orders have been reinstated with the reopening their retailers under western culture.
"Now we are as well receiving new do the job orders and we are receiving them prepared to ship from November to catch the Christmas period," Samad added.
