Walmart, Centric Brands Probe Cambodia Supply Chains Amid Labor Concerns
Portfolio Pulse from Vandana Singh
Walmart Inc (NYSE:WMT) and Centric Brands are investigating their Cambodian supply chains following allegations of illegal garment production in the country's largest women's prison. The American Apparel and Footwear Association (AAFA) highlighted reports suggesting that garments for export, including to the U.S., were produced at the Correctional Center 2 (CC2) near Phnom Penh. Both international and Cambodian laws prohibit the trade of goods made by inmates. The U.S. and Cambodia have trade agreements that the illegal employment of prison labor may jeopardize.

August 21, 2023 | 2:21 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Walmart is investigating its Cambodian supply chains following allegations of illegal garment production in a prison. This could potentially jeopardize U.S. and Cambodian trade agreements.
The allegations of illegal labor practices in Walmart's supply chain could potentially harm the company's reputation and jeopardize its trade agreements with Cambodia. This could lead to increased costs and disruptions in the supply chain, negatively impacting the company's stock in the short term.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100