The Lesotho textile giant that makes jeans for Levi Strauss, The Children’s Place and Wrangler owner Kontoor Brands has laid off 4,000 workers over the past year, the result of a dearth of orders from American brands, the rising cost of salaries, unrest in South Africa and an ongoing pandemic, local media has reported.

... Ricky Chang, manager at the Nien Hsing Textile Co...blamed the “negative impact of Covid-19 and other market forces” for the job eliminations, but noted that the reduction in orders from buyers only marked the beginning of the company’s woes. Recent wage protests precipitated a loss in revenue by “severely crippling” Nien Hsing’s production, while fluctuating Covid-19 infections and riots in neighboring South Africa... contributed to an “uncertain business environment which is difficult to operate in.”

Levi’s said that the denim juggernaut has maintained, “and at times increased,” its order volume with Nien Hsing over the past year. “At present, we are monitoring the negotiations between Nien Hsing and local worker unions to ensure that all legal obligations are upheld,” a spokesperson told Sourcing Journal. The Children’s Place and Kontoor did not respond to requests for comment...