RATE Group | Factories Reeling As Importers Stop Orders
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Factories Reeling As Importers Stop Orders

06 May Factories Reeling As Importers Stop Orders

Posted at 03:30h in Cryptocurrency News by

The coronavirus pandemic has caused a rift in the relationship between apparel manufacturers and retailers, resulting in lost profits and canceled payments as the economy slogs through the mud, according to The Wall Street Journal.

In Bangladesh, jeans maker Denim Expert Ltd. sent out a shipment of clothing weeks ago and has not received the payment as expected.

The pandemic’s turmoil upon markets, with closed stores and plummeting demand for retail goods like clothing, only compound on the existing problems manufacturers in countries like Bangladesh face. Garment contracts have shifted to accommodate importers, and many factories don’t seem to have much recourse in cases of missing payments.

That causes losses for the manufacturers, which are putting in labor and costs of their own, usually out of their own pockets, and getting nothing back.

The contracts for factories have shifted in the last 10 years from letters of credit, the old…

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