Primark to cover factory wages after coronavirus order cancellations

Primark is to cover the wages of workers in countries such as Bangladesh, where it has cancelled orders

Primark has created a fund to cover wages of factory workers in countries such as Bangladesh and Sri Lanka where the value fashion giant has cancelled orders as coronavirus led to the closure of stores.

The value fashion giant, owned by ABF, said it has already paid £1.6bn for stock in its shops, distribution centres and in transit, under its standard terms despite losing sales expected to total £650m a month following lockdowns ordered by governments worldwide designed to combat the spread of the infection.

Primark said it has offered extended payment terms to suppliers to cover “further stock ready for shipment”, but, because of the impact on factory workers producing orders that will not now be taken, it “will fund payment of the wages that relate to this product, taking into account adjustments for government support packages provided in each country”.

The initiative applies to workers in Bangladesh, Cambodia, India, Myanmar, Pakistan, Sri Lanka and Vietnam.

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