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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,…
Read MoreCSA supplied non-collegiate apparel to two brands that are university licensees: Hanesbrands (Gear for Sports) and American Eagle (Tailgate). When it closed, the factory paid workers less than 10 percent of what they were legally owed and was effectively bankrupt. Following intervention by the WRC, Hanesbrands and American Eagle, along with Gap, agreed to pay…
Read MoreFollowing the closure and illegal nonpayment of severance at CSA Guatemala, the factory’s primary buyers—Gap, Hanesbrands, and American Eagle Outfitters—agreed to make contributions totaling a little more than $1.3 million to the factory’s approximately 650 former employees. CSA Guatemala, located in Guatemala City, fully closed operations on January 19, 2019. At the time of the…
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$1.5 Million Wage Theft from Guatemalan Workers Who Made Lucky Brand Owned by Authentic and Shein
As the WRC reported previously, Industrial Hana, a garment factory in Guatemala, permanently closed operations in October 2023, without paying its approximately 250 employees $1.5 million in unpaid severance and other terminal benefits owed to them in accordance with Guatemalan law. The WRC’s investigation found that, in the months leading up to the factory’s closure,…
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