Work Resumes At Bangladesh Factory Despite Wal-Mart's Demands Government Shut It Down After Inspection Reveals Cracks In Walls

on May 14 2013 9:10 PM
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Stitch Tone Garments Ltd garment factory has resumed operations in its six-story factory building in Chittagong, Bangladesh, against requests by Wal-Mart Stores, Inc. (NYSE:WMT) that all production stop.

Wal-Mart said on Monday that its inspectors had identified structural concerns at an adjacent factory, owned by Dresswell Ltd, which is not part of the super store's supply chain.

Dresswell's building appeared unstable and could be dangerous, Wal-Mart said. Wal-Mart also said that it had "removed its business" from Stitch Tone in the wake of the collapse of a building in Dhaka that killed 1,100 people.

However, Wal-Mart asked that the government shut down the buildings entirely and requested that Stitch Tone stop the production of clothing for any client until the safety concerns were addressed. The Dresswell building is almost touching the Stitch Tone building, according to Reuters.

Stitch Tone stopped production in its building from May 4 to May 8 to address visible cracks in its walls, but now a fresh coat of blue paint covers the walls and cracks.

"We are not producing any garments for Wal-Mart," said Rajib Das Sujoy, a Stitch Tone director, adding that the company had shifted Wal-Mart's order to other factories at the retailer's request. He did not say which companies he was manufacturing clothing for now.

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