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November 2, 2020

C&A to honour all pre-Covid orders

Dutch retailer C&A says it is now fully compensating apparel suppliers for the orders placed before the pandemic hit.

By Hannah Abdulla

Dutch retailer C&A says it is now fully compensating apparel suppliers for the orders placed before the pandemic hit.

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The retailer issued a statement saying it is ensuring 100% compensation for all orders previously put on hold and has been placing new orders despite the economic headwinds the fashion industry is facing across Europe.

C&A guarantees payment of all pre-corona orders that were in shipment, already produced or in production, at the original price and according to agreed payment terms. In addition, suppliers are compensated for all pre-corona orders for which production had not yet started, either financially or by placing new orders utilizing raw materials that had already been purchased.

It adds many suppliers are also supported through its supplier finance system in cooperation with the company’s partner bank.

“Actions speak louder than words. We have taken concrete actions to support our suppliers. We greatly value our suppliers with whom we have built strong and close relationships over many years. Our aim was to leave none of our suppliers alone during this global crisis,” said Martijn van der Zee, chief merchandise and sourcing officer from C&A.

According to Worker Rights Consortium, which at the end of May confirmed C&A had reinstated a large volume of its retroactively canceled orders, which it estimated to be valued at over US$1.5bn, it was still not paying for a significant amount of production.

Commenting on the group’s decision at the end of last week, the WRC said: “This is an important development, and, on the basis of this new commitment, we have placed C&A among those corporations that are now paying for orders in full. This decision by C&A will result in tens of millions of dollars in payments flowing to suppliers.”

However, it adds: “It is concerning to see that C&A’s public statement does not communicate honestly about the fact that they originally canceled orders outright with major impacts on suppliers and workers, and instead now says the orders were merely “put on hold”.

“The delay in achieving 100% payment—we are now seven months from the date of C&A’s original cancellation—has no doubt been costly to many suppliers. Given the ample resources available to its ownership, C&A’s original cancellations were never defensible nor is the slow pace at which C&A has rectified the problem.

“Late, however, is better than never, and C&A’s decision to set things right, even at this late juncture, will benefit many suppliers and workers.”

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Navigate your business through the ‘new normal’

COVID-19 continues to dominate headlines the world over. It has already affected our lives forever. The way we work, shop, eat, seek medical advice, and socialize will all be different in the future. Quite how different remains to be seen, but all industries must plan for multiple eventualities.  Faced with an explosion of conflicting information on how to plan and implement successful recovery strategies, decision-makers are in dire need of a single, reliable source of intelligence.   GlobalData’s COVID-19 Executive Briefing gives you access to unparalleled data and insights to successfully navigate the uncertain road to recovery across the world’s largest industries. Understand every aspect of this disruptive theme by delving into: 
  •  COVID-19 infection update, with statistics on the spread, testing by country, as well as the latest data on vaccines and therapeutic developments 
  • Economic impact overview, covering stock market indices, GDP, unemployment rates, policy responses & GlobalData’s economic recovery scorecards 
  • Sector developments, with access to sector insight summaries, cross-sector indices and the leaders and laggards in each industry vertical 
Whatever your company’s imminent strategic plans, the long-lasting impact of COVID-19 must not be overlooked. Find out how to futureproof your business operations – download our report today. 
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