In early July, Dhaka University, a prominent institution in Bangladesh, erupted in protests against reserving some civil service positions for the relatives of retired military personnel. The demonstrations quickly escalated into nationwide violent clashes.

By August, Bangladeshi Prime Minister Sheikh Hasina resigned and fled to India, with the military declaring the formation of a temporary government. Although the situation in the country has stabilized, the unrest has had a significant impact on Bangladesh’s manufacturing sector and foreign trade.

As the world’s second-largest apparel exporter, Bangladesh handles orders from international clothing brands including H&M, Zara, Uniqlo, VF Corp, Levi Strauss, and Target. From mid-July to early August, garment factories in Bangladesh were completely shut down, only recently beginning to resume operations. This disruption has had a massive impact on these brands.

The Bangladesh Garment Manufacturers and Exporters Association has reported an industry loss of approximately $270 million, with the supply chain severely disrupted, affecting production and sales plans of companies.