Massive retailer Shein now reports 2 cases of child labor, according to its recent annual sustainability and social impact report.
The instances occurred from Q1 to Q3 of 2023, and upon discovery, the company said it suspended orders from the manufacturers and “undertook investigations.”
The errant suppliers were given 30 days to remediate their offenses, the company said in a statement.
Shein did not identify any cases of child or forced labor in Q4.
Shein said it terminated contracts with the underage employees and confirmed payment of outstanding wages.
The company added that it ensured its manufacturers strengthened their new hire screenings, and following “appropriate remediation, the contract manufacturers were permitted to resume business.”
Concerns about forced labor have increasingly surrounded Shein, prompting U.S. lawmakers to initiate an investigation into the fast fashion retailer.
They have also urged the Securities and Exchange Commission to delay any potential IPO for Shein until the company can confirm it does not engage in forced labor.
Reports of child labor were revealed through Shein’s Responsible Sourcing (SRS) audits, which are conducted with third-party verification agencies.
In response, Shein stated, “We remain vigilant in guarding against such violations going forward and will terminate any noncompliant suppliers.”
A spokesperson for Shein did not provide additional comments when contacted by Fashion Dive.
In addition to issues of forced and underage labor, there have been concerns about employee wages and working conditions.
Earlier this year, the environmental advocacy group Public Eye published a report indicating that Shein employees were working long hours for wages below the living wage.
In reaction, Shein announced it would invest “tens of millions of dollars” to enhance compliance across its supply chain.
In its latest sustainability report, Shein outlined its policy requiring suppliers to pay at least the legal minimum wage and provide overtime compensation.
During the SRS audits, the company claims that auditors review workers’ payslips and timesheets and conduct interviews to assess compliance with company policies.
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Also Read: An Unexpected Retailer Is Now Closing All Stores in Illinois
Other Retail News Today
A book store with 120 locations now makes an unexpected closure, leaving customers with an opportunity to get 50% off items.
A competitor to Barnes & Noble is closing one of its well-known locations after 20 years in operation.
Customers will have only a few days to take advantage of liquidation sales offering discounts of up to 50%.
The Half Price Books store in Cedar Hill, Texas—located about 17 miles southwest of Dallas—confirmed the closure news in a conversation with local ABC affiliate WFAA.
Spokesperson Emily Bruce stated that declining customer traffic and financial difficulties are the main reasons for the store’s closure.
“While we wish we could stay, unfortunately, customer traffic has decreased over the years, making it no longer financially viable to keep the Cedar Hill store open,” she explained.
Shoppers can enjoy discounts until the store closes on September 29.
Half Price Books operates around 120 locations across 19 states, with at least 40 in Texas.
The Cedar Hill location is the second store to close in Texas recently, following the closure of another store in Mesquite earlier this year after 30 years of business.
Customers at that location reported incredible deals during liquidation, with one individual claiming to have purchased $273 worth of books for just $27.30.
Currently, two Half Price Books stores remain in Mansfield and Arlington for those still seeking affordable books.
Additionally, another location in Cincinnati, Ohio, shut down in July due to lease negotiations with the landlord.
Half Price Books still has about 12 locations operating in Ohio.
Other independent bookstores that compete with larger chains like Barnes & Noble have also been closing their doors this summer.
A Rediscovered Books store in Caldwell, Idaho, has closed its doors after experiencing financial difficulties for the past four years, according to The Idaho Statesman.
In a Facebook post in June, the store expressed its sadness about the closure, stating, “After four years, this location has not been able to stand on its own.
We’ve faced many challenges beyond our control and have done everything possible to make it work.”
The statement continued, “After careful consideration, we believe the only option is to close this Caldwell location.”
In addition, Barnes & Noble closed a key location in California earlier this spring and several others in 2024.
Meanwhile, Tattered Cover quietly filed for bankruptcy in 2023 and shut down at least three of its locations.
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Also Read: Retirees Will Now Receive More Money For Social Security
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