Fast Retailing supporting manufacturing partners

To safeguard the financial stability of its production partners, Fast Retailing has committed from the outset to payment for complete orders and orders where production has commenced, with no change to payment schedules in place prior to COVID-19 disruptions.

The company has also "confirmed from the outset we will use fabrics or materials already purchased by our partners to fulfil our orders or will provide compensation should they later become unnecessary," it said in a press release.

Further, in accordance with its Responsible Procurement Policy, the company has begun consulting with each of its production partners to understand the current financial health of the partner, and to offer support if needed. This includes: working to understand whether financial risk exists because of the COVID-19 pandemic; understanding the full status of orders at each factory and evaluating how current order status compares to production capacity; and adjusting production schedules where feasible and re-allocating orders among partner factories to ensure an order distribution that does not expose partner factory to unacceptable financials risks or pressures.

"Fast Retailing will continue to monitor the impact of the COVID-19 pandemic on our supply chain. In cooperation with UN agencies, industry organisations, and the governments of our manufacturing locations, we will work to protect the security and safety of people who help to make our clothes and to help safeguard the financial stability of our production partners," the release added.

Fibre2Fashion News Desk (RKS)