Categories: B2B Payments

H&M Cancels Orders, But Vows Supplier Payment

As garment makers are impacted by postponed deliveries and work cancellations amid the coronavirus pandemic, H&M noted it would accept shipment of products that have been made already. Firms like H&M have an important function in many developing nations, and the textile industry helps economic expansion, stability and employment in nations that make textiles, The Daily Star reported.

H&M said in a message as reported by the outlet, “We will stand by our commitments to our garment manufacturing suppliers by taking delivery of the already produced garments as well as goods in production.” The company did not name any supplier from any nation per the report.

The company said per the report, “We will, of course, pay for these goods and we will do it under agreed payment terms. In addition, we will not negotiate prices on already placed orders.” The fashion company sources clothing and textile products worth almost $4 billion from over 230 Bangladeshi manufacturing facilities.

The retailer also said, “At this point, it is necessary to temporarily pause new orders as well as evaluate potential changes on recently placed orders.”

In separate news, H&M had previously publicized that it would tap into its large supply network to help hospitals that need supplies such as gowns and masks in the European Union. The effort was a way for the company to help stem proliferation of the coronavirus. Earlier this month, the fashion retailer said it was trying to figure out what was needed most and how its supply chain could help.

A spokesperson for the retailer said per past reports, “The EU has asked us to share our purchasing operations and logistics capabilities in order to source supplies, but in this urgent initial phase, we will donate the supplies.” H&M had heard that masks were the most pressing need; however, gloves and gowns were also in demand.

The fashion retailer had closed many of its retail locations because of the pandemic, as previously reported, but it has suppliers globally that can help distribute items.

Get our hottest stories delivered to your inbox.

Sign up for the Newsletter to get updates on top stories and viral hits.



The pressure on banks to modernize their payments capabilities to support initiatives such as ISO 20022 and instant/real time payments has been exacerbated by the emergence of COVID-19 and the compelling need to quickly scale operations due to the rapid growth of contactless payments, and subsequent increase in digitization. Given this new normal, the need for agility and optimization across the payments processing value chain is imperative.

Recent Posts

Google’s Search Engine Option Menu In Europe Gets DOJ Attention

Google’s move to provide a menu in Europe, which began showing up on new tablets as well as smartphones and…

21 mins ago

Brooks Brothers Readies For Bankruptcy

Brooks Brothers is in talks with banks about securing cash for a potential bankruptcy that could come within weeks, as…

29 mins ago

Today In Payments: Amazon’s PayFort To Boost Middle East Startups; Next Economic Stimulus Package Could Hit $1T

In today’s top news, Amazon is looking at buying a stake in India’s Bharti Airtel, and the Trump administration expects…

52 mins ago

China’s To Sell $4.3B In Hong Kong-Listed Shares

Hong Kong technology company Inc. plans to sell up to $4.3 billion in shares in what is expected to…

2 hours ago

President Trump Inks PPP Loan Flexibility Legislation

As some firms grapple with meeting pivotal standards for loan forgiveness amid the pandemic, President Donald Trump inked a bill…

2 hours ago

France’s Fund Aims To Rescue Tech Startups From Takeovers

Looking for a way to protect technology companies from becoming prey to foreign buyers, France has created a fund to bail…

3 hours ago