Wal-Mart Stores, Inc. (NYSE:WMT) Fired a U.S supplier having a 20 year relationship with the world’s largest retailer after a Bangladesh factory burnt last month.
The Wal-Mart Stores:
The supplier named Success Apparel mention its ignorance about the matter that its cloths were being made there. After the blaze on Nov 24 which killed 100 people, Wal-Mart Stores, Inc. (NYSE:WMT) fired one of its suppliers.
According to Success, an order has been placed to Simco, an approved supplier of Wal-Mart Stores, Inc. (NYSE:WMT), who in turn subcontracted 75% of the order to Tazreen Design Ltd. factory of Tuba Groups. According to the labor right record four other companies including Success, made clothes there for the current year.
How Wal-Mart Stores managed the issue:
In the month more than half a dozen of top level staffs left their positions. The news creates an air of fear among the investors and the share price decreased as the company reduced its equity value to indemnify staffs.
Success declined to approve the company to deal business with it as it is not in their matrix and never done business with them. He showed his loyalty towards Wal-Mart Stores, Inc. (NYSE: WMT). He is a trusted supplier of Wal-Mart Stores, Inc. (NYSE: WMT) since last two decades and never violated any terms. They did business with utmost diligence, and highest ethics and fair safety standards.
Success also focused that they treat all their employees with utmost regard for their safety and well-being.
Success sourced private label shorts for Wal-Mart Stores, Inc. (NYSE: WMT) from the Tazreen factory via Simco’s order.
The purchase order, shipment detail, inventory report and other document show that not only Success but other two more New York based and California based Suppliers of Wal-Mart Stores, Inc. (NYSE:WMT), sourced merchandise for them from Tazreen. Besides these some suppliers of Bangladesh also are involved in the same practices as per the record.
A recent report said 5 of the 14 production line of Tuba Group are engaged in making Wal-Mart Stores, Inc. (NYSE:WMT)’s shirts and pajamas.