OK, this is technically not a blog message. However, I thought it was an important news release for the fashion industry. If you care to comment regarding the information mentioned in this release or your thoughts on factory inspections, labor laws, human rights, Macy's etc., you are welcome to use the comment section.
July 29, 2008
--Macy's, Inc. (NYSE:M)
today reported that a Long Island garment factory cited by the New
York State Department of Labor for labor law violations was, in fact,
not manufacturing goods for sale at Macy's.
"There is no place in Macy's stores for goods that are
manufactured by workers who are underage, underpaid or forced to work
in conditions that are illegal," said Janet Grove, vice chair of
Macy's, Inc. and chairman of Macy's Merchandising Group. "We have
cooperated fully with the Department of Labor and applaud the
department for its vigorous enforcement of labor laws."
On July 23, the Department of Labor announced significant
violations at the Jin Shun Incorporated factory in Long Island City,
NY, which was reported to have been making women's apparel for Macy's
and other leading U.S. retailers.
An internal investigation conducted by Macy's, however, discovered
that no Macy's goods were found in Jin Shun. But a factory named Zheng
Da Inc. in Long Island City, which also was inspected by the
Department of Labor and also cited for labor law violations, was
making apparently counterfeit goods with labels from a Macy's private
brand. These goods, which were neither ordered nor authorized by
Macy's, were private brand prints from previous seasons and of
inferior quality to those made to Macy's specifications. Macy's, Inc.
is considering legal action against the owners of the Zheng Da factory
for unauthorized manufacturing of counterfeit goods under a label
owned by Macy's.
Moreover, independent third-party monitors retained by Macy's
twice inspected the Jin Shun factory in 2007 as Macy's was evaluating
potential suppliers for its private brand merchandise. In both
instances, the Jin Shun facility was rejected and removed from
consideration because of incomplete employment record-keeping. All
Macy's vendors are required to conform to the company's stringent
Vendor/Supplier Code of Conduct that sets out specific standards and
requirements for any vendor doing business with Macy's.
"This case reinforces the importance of our process for monitoring
the suppliers and factories that make products sold at Macy's. The Jin
Shun factory did not meet our requirements and thus was prohibited
from manufacturing for our stores," Grove said. "Yet the experience
with these Long Island City factories reminds us that we need to
remain vigilant because some potential suppliers clearly are not up to
the high standards we set."
Macy's, Inc., with corporate offices in Cincinnati and New York,
is one of the nation's premier retailers, with fiscal 2007 sales of
$26.3 billion. The company operates more than 850 department stores in
45 states, the District of Columbia, Guam and Puerto Rico under the
names of Macy's and Bloomingdale's. The company also operates
macys.com, bloomingdales.com and Bloomingdale's By Mail. Prior to June
1, 2007, Macy's, Inc. was known as Federated Department Stores, Inc.
and Macy's Retail Holdings, Inc. was known as Federated Retail
All statements in this press release that are not statements of
historical fact are forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Such statements
are based upon the current beliefs and expectations of Macy's
management and are subject to significant risks and uncertainties.
Actual results could differ materially from those expressed in or
implied by the forward-looking statements contained in this release
because of a variety of factors, including conditions to, or changes
in the timing of, proposed transactions, changes in the conditions of
the securities markets, particularly the markets for debt securities
and other factors identified in documents filed by Macy's, Inc. with
the Securities and Exchange Commission.
By the way, if you are looking for factory inspection services you can find a list of insepction services
in the quality assurance
section on Apparel Search.