Just heard a terrible news, one of my wife’s close friend who own(ed) her own sourcing company in Hong Kong and a factory in China has just lost everything and declared bankrupt.
This is the handbag & accessories industry, it has never recovered from the economic crisis of 2008, apparently, 3 different licensee / design companies in America and Europe all disappeared at the same time, leaving them millions of dollars in payment and debt!
One of the companies is called M London Inc, and they designed handbags for Jay-Z’s Rocawear brand. Since last year, they had delayed payments from 1 month, to 3 months and then to 6 months… and then finally, they declare bankrupcy and closed down.
The fucked up thing is… the owner of M London handbags had started M London the same way more than 10 years ago! He moved all his money to some other accounts, declared bankrupcy on the old company, and then opened M London using a partner’s name! He has just used the same loophole to open another company and start afresh… leaving our friend broke and owing a bunch of manufacturers money in China.
I wouldn’t be surprised if these factories are also owing their workers money too… the tiny little USD $200 / month wages… meanwhile the owner of M London continue his luxurious live style in posh Manhattan. 😦
Another evidence why this “mass produce for cheap”, modern type of predatory capitalism is immoral, obviously unsustainable, and we need to be conscious about it to break away from it!