Factory: Industrial Hana
Key Buyers: American Eagle Outfitters, Authentic Brands, Lucky Brand (Sparc Group), Puma, Shein
Last Updated: 2024
Case Summary
Industrial Hana, a garment factory in Guatemala, permanently closed operations in October 2023, failing to pay legally required severance to approximately 250 employees. The factory produced garments, under subcontracting relationships with other local manufacturers, for Lucky Brand (owned by Authentic, SPARC, and Shein), American Eagle Outfitters, and Puma.
The WRC engaged with factory buyers and, as a result, American Eagle Outfitters and Puma agreed to make significant contributions to remedy the violations. The WRC continues to engage with Lucky Brand and its owners to encourage this remaining buyer to participate in the remediation.
Read More:
- $1.5 Million Wage Theft from Guatemalan Workers Who Made Lucky Brand Owned by Authentic and Shein – November 5, 2024
- Guatemalan Factory That Produced Lucky Brands, American Eagle, Hanesbrands, and Gillz Closed Owing Workers $1.4 Million in Severance – February 26, 2024
In the news:
- “Should Lucky Brand Be on the Hook for Severance at Subcontracted Factory?,” Sourcing Journal – November 26, 2024
- “Authentic, SPARC, Shein urged to remediate after factory closure,” Just Style – November 11, 2024
- “WRC accuses Shein over garment factory closure,” Ecotextile News – November 8, 2024
- “Severance violation in private equity-owned Lucky Brand supply chain,” Private Equity Stakeholder Project – July 30, 2024