Workers at a shuttered apparel factory in the Cambodian capital Phnom Penh are set to receive US$200,000 worth of unpaid wages and benefits.

The factory, which used to manufacture clothing for Wal-Mart and H&M Hennes & Mauritz, was closed unexpectedly in December.

The agreement, reached on Friday (1 March), will see Wal-Mart supplier Saramax pay the 200 workers $100,000, and New Archid, which supplies H&M, pay $45,000.

The remaining $60,000 will come from the sale of the company's assets, said David Welsh, Cambodia country director of Solidarity Center, a Washington-based international worker rights group.

Workers at the factory, which sewed underwear for Wal-Mart and H&M suppliers, earned between US$70-100 a month, Welsh told just-style.

H&M confirmed that the factory, Kingsland Garment Cambodia, was not an approved supplier, and that unauthorised orders were made at the site between June and July 2012 and that workers were paid for that production.

It also emphasised that it was in discussions with its supplier, New Archid, to ensure it fulfils any responsibility with Kingsland after July 2012.