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H&M Bangladesh deaths under scrutiny

A fire at a H&M factory in Bangladesh last week was not the first to have broken out at the site and the company is investigating allegations that 21 workers who died in the blaze were locked in at the time.

H&M Bangladesh deaths under scrutiny

“There was a smaller fire there in 2008, but no one was injured then,” H&M spokesperson, Jenni Tapper Hoël told news agency TT.

“Personnel from our local office are on the way there now to find out what happened,” she said, adding that it was too early to comment on speculation that a lack of safety provisions at the factory was responsible for the deaths.

When the fire broke out on Thursday at the plant in Gazipur, north of the country’s capital, Dhaka, 21 workers were trapped in an upper floor which survivors say was locked, reports TT. At least 40 workers were injured.

The factory which makes knitted sweaters for H&M was previously checked by the company in October 2009 and no major safety shortfalls were found, said Tapper Hoël .

Viveka Risberg, head of Swedwatch, a state funded organization monitoring Swedish companies in developing countries said that it was not the first time workers have died in fires at H&M factories in Bangladesh.

“I know that another factory, that also works for H&M, burned during the last decade and that people died,” she told TT.

Risberg, who previously worked for the company and visited the factory in Gazipur, said that workers had been locked in there before.

“I know that it occurred ten years ago, but I thought that it was a thing of the past.”

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BUSINESS

Swedish retailer H&M sees profits slump after Russia exit

Swedish fashion retailer H&M reported a sizeable drop in third-quarter profit on Thursday following its decision to leave the Russian market.

Swedish retailer H&M sees profits slump after Russia exit

The world’s number two clothing group is among a slew of Western companies that have exited Russia following Moscow’s invasion of Ukraine.

H&M paused all sales in the country in March and announced in July that it would wind down operations, although it would reopen stores for “a limited period of time” to offload its remaining inventory.

The company said Thursday its net profit fell to 531 million kronor ($47 million) in the third quarter, down 89 percent from the same period last year. “The third quarter has largely been impacted by our decision to pause sales and then wind down the business in Russia,” chief executive Helena Helmersson said in a statement.

The group said in its earnings statement that it would launch cost-cutting measures that would result in savings totalling two billion kronor.

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