Press Release 13 July 2020
BESTSELLER REVEALS €500M COVID SUPPLY CHAIN SUPPORT PACKAGE
SUITE OF MEASURES WILL BOLSTER GLOBAL SUPPLIERS
Garment manufacturers from around the world who supply BESTSELLER will now benefit from an extra €500 million in extra liquidity, it has been revealed today.
The announcement comes as the Danish company releases what it calls an ‘honest appraisal’ of support for suppliers during the COVID-19 pandemic.
With a large concentration of outlets in China, BESTSELLER was among the first Scandinavian companies to feel the early economic effects of COVID-19 lockdown measures that would portend a global economic shutdown. Despite revenue nearing zero in many markets during the first weeks and months of the pandemic, BESTSELLER’s CEO, Anders Holch Povlsen, has revealed that the group has
managed to maintain year-on-year levels of production, with orders for the Autumn/Winter season likely set to exceed 2019/20.
Mr Povlsen also shared his company’s new early payment programme for suppliers, which has reduced payment terms for many suppliers from 90 days to just ten days. The company has also paid outstanding invoices early, announcing on 3 July that it would do so regardless of the date of invoice.
The result will be an extra €500M in liquidity for a sector under severe pressure, and is the first announcement of its scale in the global fashion industry.
Speaking as the company reflects on its measures during COVID-19, Anders Holch Povlsen said that €500M package is a sign of BESTSELLER’s strong partnerships
“It has been necessary for us, due to lockdowns across our markets, to adjust our business, our inflow of goods, and some of our standard ways of working. We have supported our suppliers and they have supported us, and through our partnership, we have been united in fighting the challenges and disruptions in both ends of the supply chain, a close collaboration everyone at BESTSELLER is thankful for.”
“Providing this immediate cashflow will, in the best possible way, enable our partners to do even better and share in this recovery, while helping all our suppliers meet their commitments and safeguard as many jobs as possible within our supply chain.”
“We are undertaking an honest appraisal of the part we have to play in the global economic recovery following COVID-19 lockdowns.”
“Through our actions, which over the next three months is estimated to amount to half a billion Euros in liquidity support, BESTSELLER is leading the industry in offering such comprehensive, extraordinary terms to suppliers, who deserve our help.”
COVID-19: ACTION IN THE GLOBAL GARMENT INDUSTRY
BESTSELLER endorses ‘COVID-19: ACTION IN THE GLOBAL GARMENT INDUSTRY’, an initiative that has been developed by the ILO, IndustriAll and other relevant global stakeholders. This commits us to take action to protect garment workers’ income, health and employment and support employers to survive during the COVID-19 crisis, and to work together to establish sustainable systems of social protection for a more just and resilient garment industry.
Monitoring worker payments
BESTSELLER actively monitors worker payments from suppliers to ensure proper conduct – this is an imperative part of our supplier agreements and always has been. We have, from the beginning of the COVID-19 pandemic, been committed to accepting delivery of orders already made and those in production. We have, to the best of our ability and despite lockdowns, tried to support the entire supply chain and we continue to submit orders to safeguard as many jobs as possible.
BESTSELLER is an active part of the HERproject, a partnership programme in Bangladesh, India, Cambodia and Pakistan that brings local partners on board to provide site-specific training and increase awareness among supply chain employees. By 2025, BESTSELLER will support 100,000 women in Tier 1 factories to achieve workplace empowerment and improved life-skills. Current status is a total of 78,478 women reached through our collaboration.