Walmart Admits Goods Were Made at Bangladesh Factory Before Fire

Walmart has admitted some of its products were made at the Bangladesh garment factory where a weekend fire killed at least 112 people.

By Jorge Rivas Nov 27, 2012

Walmart has admitted some of its products were made at the Bangladesh garment factory where a weekend fire killed at least 112 people.

"A supplier subcontracted work to this factory without authorization and in direct violation of our policies," Walmart said in a statement issued on Monday. "Today, we have terminated the relationship with that supplier.

Walmart’s statement comes as no surprise considering a Bangladeshi labor group on Monday released photos of smoked damaged apparel in the burned factory. The Bangladesh Center for Worker Solidarity provided The Nation images of apparel made for "Faded Glory," a line sold exclusively at Walmart.

"The fact that this occurred is extremely troubling to us, and we will continue to work across the apparel industry to improve fire safety education and training in Bangladesh."

Records show the factory that burned down received an "orange" rating from Walmart in a May 2011 site visit. According to the report, Walmart found "violations and/or conditions that were deemed to be high risk."

Li & Fung, the Hong Kong-based company believed to be the link between the factory and Walmart, said it will conduct its own investigations into the cause of the fire.

The company has pledged 100,000 takas (USD $1,161.27) for the families of each victim. The 100,000 takas matches the financial assistance from the Bangladesh Garment Manufacturers and Exporters Association, according to the South China Morning Post.