News December 21, 2018
Link To Forced Labor Factory Causes Fallout For Badger Sport
Collegiate clients were among those cutting ties with the North Carolina-based sportswear supplier.
Badger Sportswear (asi/37876) says it has suspended ordering from a Chinese factory linked to human rights abuses, but repercussions for the North Carolina-based apparel supplier have multiplied through the week, with high-profile clients, including colleges, breaking off business with the brand.
An Associated Press investigation found that at least 10 times this year, shipping containers filled with thousands of men’s, women’s and youth polyester shirts and pants were shipped to Badger Sportswear from Hetian Taida Apparel Co. Ltd’s facility in the Xianjing region of China. The AP report says that Hetian Taida uses forced labor to produce apparel. The detained workers are primarily ethnic minorities of the Islamic faith.
It is illegal in the U.S. to import products made with forced labor. The U.S. government is reviewing the reports of forced labor.
After the AP article broke this week, Badger Sportswear released a statement saying it was immediately suspending ordering from Hetian Taida and its affiliates while an investigation is conducted. “One percent or less of our products were sourced from Hetian Taida,” the statement said. “We will not ship to customers any product in our possession from that facility.”
The statement, readable in full in the below tweet, noted that Hetian Taida is certified through Worldwide Responsible Accredited Production, an independent, nonprofit team of global social compliance experts.
— Badger Sport (@badger_sport) December 18, 2018
Still, the fallout for Badger this week was swift. Colleges and youth sports organizations across the country reportedly put their logos on Badger products. In the wake of the AP report, a number of those institutions began pulling Badger products from their shelves and putting out statements saying they’re cutting ties with the Statesville, NC-based company.
“Dozens of college bookstores advertise their gear printed on Badger Sportswear, including Texas A&M, University of Pennsylvania, Appalachian State University, University of Northern Iowa, University of Evansville and Bates College.”@tamu @appstate @northerniowa
— I mostly tweet about tyranny these days (@synchronicitisi) December 20, 2018
What say you?
UE is no longer selling items made by Badger Sportswear. https://t.co/c8iQdAf4Wy
— chad lindskog (@chadlindskog) December 18, 2018
Beyond the University of Evansville removing Badger merchandise, Appalachian State University in Boone, NC, told CBS that it terminated its licensing agreement with Badger and was no longer selling the company’s products. Meanwhile, at least four colleges in Maine took similar action. Bowdoin College nixed sales of Badger T-shirts, shorts and sweatshirts until the company completes its investigation. The University of Maine in Orono stopped selling Badger hoodies, jackets and T-shirts, while two other higher education institutions in the state, Bates College and Colby College, took similar steps. Texas A&M University also said it removed Badger gear from its online shop.
On Friday morning, Badger items in the University of Pennsylvania bookstore were listed as unavailable.
Badger products appeared to be withdrawn from the digital shop at the University of Northern Iowa, too.
Other suppliers in the promotional products industry carry Badger products. As of Friday morning, suppliers like Top 40 firms S&S Activewear (asi/84358), Heritage Sportswear (asi/60582) and TSC Apparel (asi/90518) featured Badger apparel. Counselor reached out to the companies for comment, but S&S and Heritage declined. Counselor was unsuccessful in getting a response from TSC.
While Chinese government officials have slammed the AP report on forced labor, the damage may already be done for Badger Sport. It’s a cautionary tale that highlights the importance of thoroughly vetting your entire supply chain.