Grameen Uniqlo, a social business initiative of Fast Retailing Co Ltd, will shut down all its 10 stores in Bangladesh by the middle of June and cease to operate in the country.
The company said in a statement on Wednesday that Grameen Uniqlo, Fast Retailing Co Ltd's social business, operating in Bangladesh through its 100% wholly-owned subsidiary Uniqlo Social Business Bangladesh Ltd, will close all ten stores by June 18, and the business will be closed down.
The parent company -- Fast Retailing -- also said: “In view of Bangladesh's significant economic development in recent years, as well as changes to its business environment, Fast Retailing has determined that Grameen Uniqlo has fulfilled a certain role, and has decided to conclude its business activities.”
Uniqlo Social Business BD Ltd that started with approximately $4.6 million, in a separate notice to customers, also regretted informing the closure announcement.
In 2010, Fast Retailing started the social business together with Grameen Bank Group to respond to social issues, like poverty, health, and education, in Bangladesh through a clothing business.
All Grameen Uniqlo clothes are planned, designed, produced and sold in Bangladesh. All the profits are reinvested for social business expansion and solving social issues, it claimed.
Since 2013, Grameen Uniqlo opened stores mainly in the capital and conducted business with an aim of improving the lives of people of Bangladesh by providing clothing to meet the needs of local daily life and by creating opportunities for employment in a safe environment, according to the statement.
Terming Bangladesh one of its most important manufacturing locations, Fast Retailing said it remained committed to Bangladesh.
The parent company also said it would continue working to improve the lives of Bangladeshis.
In 2008, the company opened a production office, which contributes to development of the local textiles industry, while partner factories in Bangladesh continue to produce Fast Retailing products, including Uniqlo items.
According to Fast Retailing's core sewing factories list of 2019, some two dozens of local factories produce goods for the company, which runs many global brands such as Uniqlo, Gu, Theory, PLST, J Brand, Helmut Lang and Princess tam tam.