Statement on Business Termination with Sadaf Fashions Ltd.

Statement on the termination of Accord signatory companies’ business relations with Sadaf Fashions Ltd. (768, Askarabad, D.T. Road, North Agrabad, Chittagong), due to the supplier’s refusal to implement workplace safety measures.

Sadaf Fashions Ltd. was inspected by the Accord for structural integrity on the 19th of April 2014. The findings were of such a serious nature that the Government of Bangladesh Review Panel was convened and requirements for immediate corrective action were imposed. An Accord follow-up inspection found that the requirements to reduce load, remove a wall, empty an area of all load and dismantle a cantilever slab were not followed. Furthermore, a requirement to carry out a Detailed Engineering Assessment, as well as requirements related to fire exit and other fire safety measures, were not met.

Despite numerous efforts by the Accord staff and Accord signatories, the factory owner continued to refuse to cooperate in the resolution of the health and safety issues at this factory. The owner also refused to comply with an order to evacuate the factory until all structural defects are assessed and repaired.

The refusal of Sadaf Fashions Ltd. to implement the Accord’s requirements for continuation of production prompted the implementation of a notice and warning process in accordance with Article 21 of the Accord. Despite this notice and warning process, progress has not been achieved. The Accord, as of November 2, 2015, has therefore required the signatory companies using this factory to terminate their business relationship with this supplier and all factories it operates.