VF Corp is working to protect the financial integrity of its business while also helping to protect the livelihoods of its suppliers and the workers they employ. The company is paying its suppliers for all orders that have already been produced. It is honoring all valid purchase orders with a factory release date before June 1, 2020.

In some cases, VF is delaying shipment dates to manage the flow of goods into the destination country. When shipment must be delayed, the retailer engages with its suppliers to determine if the shipment delay will create a cashflow challenge for its supplier, and works with the supplier to support their financial needs through a variety of potential solutions.

The retailer has asked its suppliers to pause work on any open purchase order with a release date on or after June 1. This will allow it to reassess projected consumer demand so it can better understand the appropriate timing for the delivery of these orders. It has asked all suppliers with paused orders (those for release after June 1) to provide details of their liabilities resulting from ordered raw materials and work completed in relation to these open purchase orders.

To help manage this situation in partnership with its suppliers, VF is not issuing new purchase orders until it has better visibility of consumer demand and production needs.

The retailer believes these steps will demonstrate its commitment to maintaining strong working relationships with its suppliers and its shared interest in maintaining open channels for ongoing dialogue and discussion. It is working with its peers across the apparel and footwear industry, as well as with multi-stakeholder organizations to identify additional opportunities to support apparel factory workers during these uncertain times.