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WASHINGTON – Analysis of import data shows US and European apparel brands have refused to pay overseas suppliers for more than US$16bn of goods since the outbreak of Covid-19. The US-based Center for Global Workers’ Rights (CGWR) and the Worker Rights Consortium (WRC) used import data to calculate that garment factories globally lost at least US$16.2bn in revenue between April and June this year. In many cases, brands cancelled orders or refused to pay for clothing orders they had placed before the coronavirus outbreak.

The research suggests that suppliers in sourcing hubs such as Bangladesh, Cambodia and Myanmar have had to hugely slim down or close operations altogether.

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