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Bangladesh: Garment factory reduces workforce before shutting down, amid order shortage & global economic slowdown; incl. co. response

In January 2026, it was reported that the garment factory Mukul Knitwear in Bangladesh had closed down, amid rising production costs and a severe financial crisis. The factory had previously reduced its workforce from 3,000 to 670, reportedly due to the global economic slowdown and shortage of work orders.

In July 2026, Business & Human Rights Centre invited alleged buyers Inditex (for Zara), Rallye Brands and Gemo to respond. Only Inditex responded - the response can be found below.

Company Responses

Gémo

No Response

Rallye Brands

No Response

Inditex View Response

Timeline