Can you confirm whether the facility linked to the allegation is within your supply chain?

Yes, we can confirm that The Dress and The Ideas factory was indirectly part of our supply chain until its closure in February 2025. Our company does not work directly with the factory or its owning company, Turag Garments. Instead, our business relationship exists with a trusted importer that maintains a direct commercial partnership with Turag Garments.

Turag Garments, in turn, determined at which facility production took place based on available capacity. Most production took place at The Dress and The Ideas. In 2024, production for Ernsting’s family accounted for approximately 5% of the factory’s annual capacity.

How are you ensuring that your purchasing practices in relation to The Dress and The Ideas and the layoff of 400 workers at the factory, reportedly due to a lack of work, meet the standard required to protect workers' rights and livelihoods?

Ernsting’s family has consistently placed stable orders via our importer for the past several years. In 2025, production for our orders has been relocated to other facilities operated by Turag Garments.

We understand that the decision to close The Dress and The Ideas factory was a strategic move by the owner, reportedly in response to the termination of business by a major international buyer. This decision was not linked to our consistent business engagement through our importer.

As a signatory to the International Accord and an active member of the Ready-Made Garment Sustainability Council (RSC), Ernsting’s family is firmly committed to promoting responsible purchasing and factory exit practices. In accordance with the RSC’s Factory Closure Protocol, the closure of the factory was monitored and verified to ensure compliance with all relevant obligations under Bangladesh Labour Law (BLL).

Workers were also supported through accessible grievance mechanisms such as the RSC complaint platform, as well as by the factory’s internal union, The Dress & The Ideas Sommiloto Sromik Union, affiliated with the Combined Garment Workers Federation listed with IndustriALL Global Union.

We request more information on the allegation, including what your company has done to investigate it and ensure remedy for workers.

Following the public announcement of the factory closure on 16 February 2025, operations ceased on 17 February, with all severance payments finalized by 27 February 2025.

We have reviewed the outcome of the RSC’s independent verification and can confirm that, according to their findings, the following payments and compensations were made to affected workers in compliance with the BLL:

Salary and overtime for the period 1–16 February 2025

Encashment of earned leave up to 16 February

One month’s notice period compensation (BLA 2006, §20 (2-a))

Retrenchment compensation: 30 days of basic wages per year of service (BLA 2006, §20 (2-c))

An additional BDT 2,000 paid beyond all dues under §20

A higher payment of BDT 5,000 granted to workers not eligible for retrenchment benefits under §20 (2-c)

The above mentioned measures have been taken under the supervision and validation of the RSC, whose mandate is to ensure that workers receive fair and timely compensation in such cases...