Canada's Loblaw joins Primark in Bangladesh compensation pledge

Mon Apr 29, 2013 8:57pm EDT
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By Susan Taylor

TORONTO, April 29 (Reuters) - Canada's Loblaw Companies Ltd on Monday became the second Western fashion retailer to promise compensation for the families of victims of the Bangladesh garment factory collapse that killed nearly 400 people last week.

Loblaw, which had some of its Joe Fresh clothing line manufactured at Rana Plaza, followed British retailer Primark in offering to compensate victims of the South Asian country's worst industrial accident.

"We will be providing compensation for the families of the victims who worked for our supplier," said spokeswoman Julija Hunter in an email.

"We are working to ensure that we will deliver support in the best and most meaningful way possible, and with the goal of ensuring that victims and their families receive benefits now and in the future."

Eight people including four factory bosses have been arrested over the collapse of the factory last Wednesday.

The building's owner, a local leader of the ruling party's youth front, appeared in court on Monday and police are looking for another factory boss, David Mayor, who they said was a Spanish citizen.

Some 2,500 people have been rescued but emergency workers say there is now little hope of finding anyone else alive in the rubble of the eight-storey plaza, which officials said had been built on swampy ground without the correct permits.

Bangladesh is the world's second-largest garment exporter after China. The collapsed complex housed a number of factories that made clothing for Western brands.   Continued...