Bangladesh garment makers have won a lawsuit filed against Sears. The garment makers who have been impacted by coronavirus have won a $40m lawsuit against US giant clothing firm, Sears. Joseph E Sarachek, who represented Bangladeshi factories in the lawsuit, has filed against Sears since last year June.
He said that the retailer left its manufacturers with a huge pile of its clothing and unpaid bills and stiffed them several times before. After the garment makers won the case, Sarachek maintained that his clients had been given the bulk of their money back in a settlement with Transformco.
The suppliers were obviously thrilled that we got them a significant return.Attorney Joseph Sarachek
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After Sears went bankrupt, garment suppliers were pushed to a breaking point. Some of the Bangladesh garment makers who filed the suit about the canceled orders were owed about $6 million for clothing that had been sewn and delivered to Sears last spring.
They received initial payments from the settlement last September and they are now receiving payouts. When the pandemic hit, major brands and retailers which included The Children’s Place, Global Brands Group and Acardia, Forever 21, refused to pay factories worldwide on goods worth $40 billion.
While more than 24 large brands such as Zara, H&M, VF Corporation VFC, and PVH PVH reinstated and paid for orders after international pressure last year, goods worth $20 billion have not been paid for.