• A welcome judgement
  • Disturbing facts and figures
  • Power of the people
  • Police and pepper
  • Better days ahead for Bangladesh
  • Riders on easy ride to 1st win
  • Players get into field hungry
  • What political profit from the Dhule riots?
  • Yet another laurel for Babita
  • Madhu mela begins at Sagardari
  • Walmart refuses to take clothes worth $1m from Simco Dresses
  • Banks’ lending against deposit tumbles
  • Univs urged to reform admission process
  • Female RMG worker found dead in Chittagong
  • Kashmir advises people to prepare for nuclear war
  • Prince Harry lashes out at press on return from war zone
  • Govt asks media to stay off adverts of illegal products
  • BERC to seek increase or subsidy from Feb
  • Amounts increased for non-govt teachers
  • MKA defends DC Harun’s Farroque bashing
  • New long-route bus fares yet to take effect
  • EC won’t take any suo moto action against Jamaat
HOME  BUSINESS
  
Print Friendly and PDF

TAZREEN FIRE LINK

Walmart refuses to take clothes worth $1m from Simco Dresses

Moinul Haque

A file photo shows a man finding remains of cloths from debris at Tazreen Fashions on the outskirts of Dhaka where a devastating fire killed 112 employees on November 24, 2012. — New Age photoA file photo shows a man finding remains of cloths from debris at Tazreen Fashions on the outskirts of Dhaka where a devastating fire killed 112 employees on November 24, 2012. — New Age photo

Global retailer Walmart has refused to receive clothes worth $1 million from Simco Dresses Limited, a Bangladeshi company, with which the US company terminated its relation after the Tazreen Fashions fire.
The US retailer terminated relation with Simco Dresses as the Bangladeshi company subcontracted work to Tazreen Fashions without the retailer’s knowledge.
Leaders of the Bangladesh Garments Manufacturers and Exporters Association and the owner of Simco Dresses have been negotiating with Walmart over the crisis.
But their effort made no progress, a leader of the BGMEA said.
Officials of Simco Dresses said that they had received order to make 3.5 lakh pieces of ladies’ shorts for Walmart through a New York-based buying house, Success Apparel.
Simco had shipped 1.3 lakh pieces of the product to Walmart in four phases before the fire incident at Tazreen Fashions which killed 112 workers on November 24 last year.
‘The remaining pieces of the product are waiting for shipment,’ they said.
After the fire incident at Tazreen Fashions, Walmart cancelled its order and refused to receive the products including those shipped by the company.
‘Even they are not receiving from ports the goods we shipped before the fire incident,’ said Abdur Rashid, finishing manager of Simco Dresses.
He said that the company had plunged into a crisis and could not pay the wages of the workers for last month.
A director of Simco Group said on January 14, BGMEA leaders and the factory owner held a meeting in Hong Kong with Walmart officials and discussed the matter.
He, however, said that the meeting could not bring any fruitful outcome as Walmart did not agree to do business with Simco Dresses.
A vice-president of the BGMEA told New Age on Tuesday that the president of the trade body, Md Shafiul Islam Mohiuddin, had sit with the Walmart officials in Hong Kong and urged them to reconsider the cancelation of the order.
‘At the meeting, the Walmart officials had said that they would inform the company about it later, but they are yet to make any further response,’ he said.
The Simco Group director said the Walmart officials categorically said at the meeting that it would not be possible for the retailer to continue business with Simco Dresses as it subcontracted work to Tazreen Fashions.
He said that after getting the order from Walmart they had subcontracted work of making 25,000 pieces of the product to Tuba Group.
‘But Tuba Group had shifted the work to its sister concern Tazreen Fashions,’ he said.
The officials of Simco Dresses said that the clothes which were shipped in November 11-22 with the consent of Walmart remained stuck at the Los Angeles port as the retail chain had refused to accept the shipment.
Meanwhile, the labour leaders in the garment sector criticised the US biggest retailer Walmart for the cancelation of the order and keeping it aloof from its social and moral responsibilities.
They demanded that it should do something for the Tazreen fire victims under corporate social responsibility.
Nazma Akter, president of Sammilito Garments Sramik Federation, said the decision of Walmart was unfortunate and inhuman.
Abul Hossain, president of Textile Garments Workers Federation, said that global buyers were putting some unusual pressure on the garment sector of Bangladesh.
On Monday, a number of labour organisations demanded compensation from Walmart for the Tazreen fire victims at a press conference in the city.   




Reader’s Comment

comments powered by Disqus
   

Walmart refuses to take clothes worth $1m from Simco Dresses

A file photo shows a man finding remains of cloths from debris at Tazreen Fashions on the outskirts of Dhaka where a devastating fire killed 112 employees on November 24, 2012. — New Age photo
Global retailer Walmart has refused to receive clothes worth $1 million from Simco Dresses Limited, a Bangladeshi company, with which the US company terminated its relation after the Tazreen Fashions fire. The US retailer terminated relation with Simco... Full story

Banks’ lending against deposit tumbles

The advance-deposit ratio in the banking sector decreased significantly due to a lower disbursement of loan in the private sector, said officials of Bangladesh Bank and commercial banks. Full story

Mobile subscribers drop for 3rd month

The active mobile phone subscribers of the country decreased by 2.95 lakh in December, three months in a row, as the tight SIM registration procedure imposed by the Bangladesh Telecommunications Regulatory Commission continued to... Full story

BSEC investigates unusual trading thru ICB Securities

The Bangladesh Securities and Exchange Commission on Tuesday formed a committee to investigate suspicious trading of shares of three companies by a certain individual through ICB Securities Trading Company Ltd. Full story

Ministry sits with stakeholders today to finalise stance

The commerce ministry will sit with the stakeholders today to finalise its position regarding the latest move by the office of the United States Trade Representative to withdraw the GSP facility for Bangladeshi products... Full story

Walmart tightens supplier policy after Tazreen fire

Walmart Stores Inc plans to cut ties immediately with suppliers who subcontract work to factories without the retailer’s knowledge, changing its policy after a fire killed more than 100 garment workers in Bangladesh... Full story

China says top 10 steel mills to control 60pc of capacity by 2015

China, the world’s largest steel producer, aims to bring around 60 per cent of total steel capacity under the control of its top 10 steel mills by 2015 as part of a wide-ranging plan to restructure its industries. Full story

Oil mixed in Asian trade

Oil prices were mixed in Asian trade Tuesday on geopolitical concerns triggered by a bloody showdown between Islamists and Algerian forces, with weaker crude demand capping gains. Full story

Yen mixed after BoJ adopts new inflation target

The yen was mixed in afternoon forex trade on Tuesday after the Bank of Japan adopted a two per cent inflation target and launched an open-ended easing policy, moves widely expected by the market. Full story

European stocks sag despite surging German confidence

European share prices slid on Tuesday, despite soaring investor confidence in eurozone powerhouse Germany, as Frankfurt wobbled on rumours over the health of its banking sector, dealers said. Full story

Davos leaders uneasy over glut of easy money

A general view of the city of Davos, the Congress Hall venue of the World Economic Forum on Monday. — Reuters photo
The world is awash in easy money, with consequences that are starting to worry some central bankers and business leaders at the Davos World Economic Forum, though so far inflation fears seem overdone. With developed world government finances... Full story

No respite for eurozone in long rebalancing slog

A picture illustration taken with the multiple exposure function of the camera shows a one Euro coin and a map of Europe recently. — Reuters photo
The eurozone crisis is entering a new, treacherous phase for governments, which can only cross their fingers that slow-burn reforms will pay off before voters get fed up with austerity and high unemployment. On the face of it, 2013 should... Full story

World shares hit 20-month high as Japan promises open-ended easing

World shares hit a new 20-month high on Tuesday after Japan’s central bank promised to pump unlimited stimulus into the country’s economy to fight the threat of deflation and generate growth. Full story

Cathay Pacific Airways gets new GM

Charlie Stewart-Cox
Cathay Pacific Airways on Monday announced Charlie Stewart-Cox as the airline’s general manager for South Asia, Middle East and Africa regions with effect from January 21. Stewart-Cox will be responsible for overseeing the business and operations... Full story

Jamuna Bank gets new AMD

Md Abul Shahjahan
Md Abul Shahjahan has recently been promoted to the post of additional managing director of Jamuna Bank. Shahjahan started his banking career as a probationary officer with the then United Bank — presently Janata Bank — in 1970, said... Full story

Etihad to finalise deal with Jet on Friday

Abu Dhabi’s Etihad Airways will finalise a deal to buy a stake in India’s Jet Airways on Friday, CNBC TV18 reported, in what would be the first such investment by a foreign carrier in an Indian airline since rules were relaxed last year. Full story
  • Online Poll


    Do you think that the government has successfully brought back normalcy in public life after the January 5 elections?

    • Yes
    • No
    • No comment
    Ajax Loader