In a crowded industrial district on the outskirts of Bangladesh’s capital, Dhaka, a seven-storey building is stacked with cartons labelled with Australian fast fashion brands like Millers, Rivers and Rockmans.

Inside, rows of garment workers — mostly women — continue to cut denim and assemble jeans.

But the future of the Padma Satel Arab Fashions factory is in doubt after Mosaic Brands, the Australian parent company of several fashion labels, defaulted on $2.5 million in payments to the supplier.

Mosaic Brands’ decision to enter voluntary administration late last month has triggered a ripple effect across Bangladesh’s garment sector, threatening the livelihoods of thousands of workers in 23 factories reportedly owed more than $30 million.

“Since June, we have been continuously requesting them to pay our overdue payment, but they told us their sales were down and encouraged us to continue our shipments and they would pay soon,” said Padma Satel Arab Fashions director Jabed Ahmed.

[Source: ABC News]