New clothes pile up at Cambodian factories. Coronavirus forces U.S. brands to cancel orders [Los Angeles Times (CA)]
Target Corporation (TGT)
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Source: Los Angeles Times
T-shirts, skirts and shorts are piling up at the clothing factories ringing the Cambodian capital of Phnom Penh. Once destined for American and European stores, the spring and summer collections are casualties of the economic contagion that’s trailed the spread of the coronavirus, resulting last month in the biggest decline in U.S. retail sales on record. Brands such as Gap and Old Navy can no longer sell the clothing and have canceled orders. That’s left factory owners and workers unpaid in an industry with little financial cushion to endure weeks without business. “We only get paid when the clothes are delivered,” said Ken Loo, secretary-general of the Garment Manufacturers Assn. in Cambodia. “We have zero income and zero cash flow. “We could sue them,” Loo said of the buyers refusing to pay, “but I don’t know if we’ll be around to sue.” The crisis unfolding on the factory floors of the Southeast Asian country is but a snapshot of the economic fallout rippling across the globe. But
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