This is an epidemic, over which Sears, one of the biggest oppressors of Bangladeshi-made garment exporters, has suffered a rare victory over Western buyers.
Last spring, the company went bankrupt with a large amount of arrears against the shipment of readymade garments supplied from Bangladesh.
Joseph E., a lawyer for 21 Bangladeshi factories, said they had won a multi-million dollar lawsuit against Sears in June. Forbes quoted Sarachek as saying.
The money was recovered through a deal with Transformco, a private company created by ESL Investments, the hedge fund of US billionaire Edward Lampert, which acquired Sears and Kemart last year due to bankruptcy, the online magazine reported.
Sarachek said garment exporters must be very happy to have received a significant amount of money back.
Not only Sears but many top foreign buyers, including Forever 21, Ross Dress for Lace, The Children’s Place, Cole’s, Global Brands Group and Arcadia (the owner of the top shop) refused to pay the equivalent of হাজার 4 trillion last spring. As a result, the factories went bankrupt and the garment workers were forced to go on the road, losing a few months’ wages, especially in the field.
According to the lawyers representing these factories, the cancellation of these orders is responsible for the humanitarian catastrophe in Bangladesh and other parts of Asia.
But after going bankrupt, Sears pushed these garment suppliers against the wall; They did not get the price even after making clothes of multiple purchase orders.
Sarachek said they lose money before they go bankrupt, they also lose money in the process of going bankrupt and then vice versa.
According to Reuters, the plaintiffs in the lawsuit against Sears sent many of these garment suppliers to Sears last September on a ৬ 6 million ship. They have received some money initially from the September settlement, and this payment has continued.
Sarachek said he is working on complaints from at least 100 other factories that owe hundreds of millions of dollars to large buyers such as Forever 21, Global Brands Group, Sean Jean, Katy Perry and Jones New York.
The owner of the Global Brands Group and the world’s largest ready-made garment broker bought the garments for Hong Kong-based Lee & Fung Sears. However, Forbes did not know the comments of these companies.
But more than two dozen big brands like H&M, PVH, VF Corporation, Zara and C&A were forced to pay the price by reinstating purchases last year in the face of international pressure. However, before the epidemic, these buyers have not yet paid the price of two billion dollars.