Recent fashion news has been clouded with unsettling reports about big fashion retailers recklessly canceling orders, leaving their workers without job, income, or social security... This is an incredibly complex situation, but we will briefly explain what has happened in the past few months and why.
Because stores have had to close down due to government-enforced lockdowns, many companies failed to pay for orders that they placed months ago. Suppliers in the fashion industry have faced many cancellations, reduced order volumes, and extended payment terms. This has forced suppliers to lay off their employees, often without pay. Garment workers, who are often already underpaid, are pushed towards greater economic vulnerability and find themselves in a devastating position.
If you're interested in reading more about this, you can read Clean Clothes Campaign's live-blog with daily information about how COVID-19 is influencing garment workers' rights in supply chains around the world. Another insightful resource is the The State of Fashion 2020: Coronavirus Update.