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PVH Corp. To Close Its Manufacturing Facility In Ethiopia

PVH Corp. To Close Its Manufacturing Facility In Ethiopia

PVH Corp. To Close Its Manufacturing Facility In Ethiopia

PVH Corp. has revealed that the company will be closing its manufacturing facility in Ethiopia due to the government’s ongoing conflict with forces aligned with the Tigray People’s Liberation Front.

Prior to the conflict, PVH Corp. sold its Heritage Brands portfolio and was in the process of transferring over the facility to a partner in Ethiopia.

“The speed and volatility of the escalating situation there made [the sale and transfer] no longer possible, resulting in the difficult decision to close the facility,” said Chief Supply Chain Officer Sarah Clarke in a company note sent out on Wednesday.

“We are continuing to explore options for a long-term solution for the facility to continue operating.”

The facility was originally built in Ethiopia’s Hawassa Industrial Park in 2016 but was later subject to a labor abuse probe in 2019. According to an investigation, employees faced workplace discrimination and were only paid 12 cents an hour. PVH Corp. later followed up with its own investigation and addressed the labor violations.

The facility is expected to close on November 25, 2021.

Business of Fashion was the first to break the news.

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