VF Corp vouches for loans to upgrade factories in Bangladesh | RetailDetail

VF Corp vouches for loans to upgrade factories in Bangladesh

VF Corp vouches for loans to upgrade factories in Bangladesh

American clothes group VF Corp will provide full guarantee for loans the World Bank gives to a number of Bangladeshi suppliers to improve factory safety.

Guarantee for 10 million dollars

Over a year ago, the Rana Plaza complex collapsed near the Bangladeshi capital, Dhaka. More than 1,100 textile workers died and the disaster has uncovered the abysmal conditions in which Western-focused clothes are made. 


To help resolve that situation, VF Corp (the group which owns The North Face, Kipling, Timberland, Vans and Wrangler) has struck a deal with International Finance Corporation (IFC), part of the World Bank Group. The American group will vouch for 10 million dollars (8 million euro) in IFC loans for Bangladeshi suppliers. That way, they can improve safety for their workers. Loans range from 100,000 dollars (80,000 euro) to 1.3 million dollars (1 million euro).


Guarantee results in cheaper loans

VF Corp's guarantee allows IFC to hand out cheaper loans as it no longer has to add a higher risk interest rates for default payments.


Arunima Sportswear, Olio Apparels and Radisson Apparel were the first of VF Corp's Bangladeshi suppliers to benefit from the more favourable loan conditions.

Questions or comments? Please feel free to contact the editors

HelloFresh buys American competitor and achieved strong growth in 2017


HelloFresh’ turnover last year grew 52 %, bringing it closer to profitability. The German meal box delivery service believes it will become profitable before the end of the year.

Spar makes ambitious entry into Greece


Spar International has set its sights on Greece as the next country to conquer and lead as the foremost independent food retail chain. Spar Hellas will cooperate with Asteras and Mesis to develop more than 500 Spar stores over the next four years.

Dr. Oetker buys half of Freixenet


Henkell, which is Dr. Oetker’s drinks division, has acquired slightly more than half of cava brand Freixenet’s shares. Following two years of negotiations, both companies struck a deal, even though the German food giant will not reign supreme at Freixenet.

Picnic confirms German arrival


There had been rumours that Dutch online supermarkets Picnic was trialing in Germany, news its co-founder Michiel Muller has now confirmed.

Délifrance joins FFC's portfolio


Dutch Franchise Friendly ConceptsDélifrance Benelux acquisition is in full swing. The franchise organization will obtain the French sandwich chain’s Benelux master franchisee on 1 April.

IKEA has developed actual "bug burger"


SPACE10, furniture giant Ikea’s innovation lab, will present a healthy alternative to the classic hamburger, where the meat is replaced by red beets and mealworm. It is also working on a “dogless hotdog”;

Back to top