International fashion brands are diverting orders away from Bangladesh following the turmoil that led to the fall of Prime Minister Sheikh Hasina.
The political unrest in Bangladesh, the world’s second-largest garment exporter, has caused significant disruptions in the country’s manufacturing sector, affecting global supply chains.
The chaos began after Sheikh Hasina’s government cracked down on student protesters, leading to widespread violence that resulted in an estimated 500 deaths.
This turmoil ultimately culminated in the toppling of Hasina’s regime last week.
The unrest led to the closure of factories across the country, many of which were targeted in retaliatory attacks.
Factories supplying global brands such as H&M and Zara were among those torched.
The violent disruptions have delayed deliveries of clothes and shoes destined for European and North American markets for the winter retail season.
To manage the backlog, factories have extended working hours and resorted to air freight, a costly measure that has severely impacted their profits.
Manufacturers in Bangladesh report that several international brands have shifted a significant portion of their upcoming orders to other Southeast Asian countries like Cambodia and Indonesia.
Syed Nasim Manzur, managing director of Apex Footwear said: “Large groups are saying they’ll reduce their sourcing by 30 per cent for the next season.”
Earlier this month, H&M, Uniqlo and Zara were all reported to have suffered delays in clothing collections due to the political unrest.