H&M starts cutting business with some suppliers in BD

H&M one of the largest buyers of locally made readymade garment has started cutting business with some of its suppliers in Bangladesh.

The buyer has already notified about the business termination to more than half a dozen of garment factories.

When asked, managing director of an export-oriented composite knit textile unit located in Bhaluka confirmed that his factory received such a mail a week back from H&M.

"We work with H&M for more than two decades and now recently it has informed us that it wouldn't source from us," he told the FE on Wednesday night.

The biggest buyer of Bangladesh garment items, howeve, receive the goods for current season and some orders for next season, the owner said.

He, however, said H&M has not mentioned any reason for the relation cut.

"We maintain a good relation for last 21 years of business and now we will be in dire situation as a good portion of the factory capacity has been engaged in producing garments for H&M" the owner noted.

He also mentioned that they have also communicated with H&M immediately after receiving the mail but no respond received yet.

H&M Bangladesh country office representatives, however, couldn't be reached despite repeated attempts to reach through mobile phone at the time of filing the report at 10.30 pm.

Industry people alleged that more factories are in the list of H&M's business cut as the buyer's strategic plan to diversify sourcing from Bangladesh.

Munni_fe@yahoo.com