Marks & Spencer's response to Beximco Group factory closures
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Before August 2024, prior to the arrest of the Beximco owner, Beximco had been one of our suppliers however we had already begun the responsible mitigation to other sources. As part of this process we followed our published Responsible Exit Guidelines.
Within these guidelines we are committed to taking appropriate steps to safeguard the welfare of workers in our supply chain. We are mindful that any decision to move production elsewhere could have consequences. Therefore, our approach to disengage from any factory is planned, with clear rules, policies and commitments based on compliance with national laws, international labour standards, the terms of any collective bargaining agreements that are in place and consultation between all key internal and external stakeholders. We encourage all parties to work together to mitigate any negative consequences ensuring workers are paid their legal financial entitlements.
Regarding payments, in addition to our agreed standard payment terms with our suppliers, we offer vendor finance and letters of credit meaning suppliers can get early access to cash regardless of payment terms. Therefore, in the wake of any unpredictable events where production may be interrupted or halted, our payment terms are maintained. We always pay for shipped product and across all our partners we aim to ensure that no fabric goes to waste.
As Beximco is no longer within our supply chain we have limited influence but will continue to monitor the situation to ensure compliance to our Global Sourcing Principles and that workers’ rights are upheld.