TJ Maxx, one of the largest clothing retailers in the US cancelled work orders of 12,000 units of garment items worth $85,950 and held up payment for 17,700 units of garment work orders worth $125,000 with another local supplier.
It has not been paying its Bangladeshi suppliers their dues, although its parent company paid a substantial amount of dividend to its shareholders during the pandemic.
The TJX Companies, the parent company of TJ Maxx and Marshalls that also got US government credit for COVID-19, distributed $480 million to its shareholders recently.
TJ Maxx has been sourcing garment items from few Bangladeshi factories and it has cancelled work orders with them using the proverbial excuse of a drop in sales and closure of stores during the pandemic.
It pushed to reopen stores amidst the pandemic in May, which led to reopening of 85 per cent of its stores by mid-June. It even had more sales in May than last year.