Hennes & Mauritz AB stores in some parts of China are being closed by their landlords, threatening to disrupt the clothing giant’s growth in its fourth-biggest market as Beijing’s growing sensitivity toward criticism of the human-rights situation in Xinjiang ensnares western companies.
At least six stores in the lower-tier cities of Urumqi, Yinchuan, Changchun and Lianyungang have been shut down by the owners of the properties, according to mall operators in those areas who were contacted by Bloomberg. Local media have reported more closures, with pictures showing H&M’s brand billboards being removed.
The closures are the latest escalation in the backlash against an undated H&M statement on its website that expressed concern about reports of forced labor in the far west Xinjiang region, a major producer of cotton used in the global apparel supply chain.
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