Specialized is committed to ensuring every worker in our supply chain is treated fairly and with respect. We have been closely monitoring the situation at the APS Apparel Factory that closed in August of 2022. A Specialized contract supplier last utilized this factory in December of 2021. The factory at that time was certified 'Platinum’ by the independent WRAP organization – Worldwide Responsible Accredited Production – the highest rating for human resources management, health and safety, and environmental practices.
Upon hearing troubling reports of unpaid amounts due to the factory's workers, Specialized launched an investigation. We have verified that in March 2022 Specialized's contracted supplier paid for all Specialized work completed at the factory 5 months before the factory's closure. However, the fact remains many of these workers were left with unpaid amounts due them by the factory when it closed in August.
A judicial process is ongoing in El Salvador regarding the closure of the factory and the liquidation of its assets. Specialized is not a party to the process and has no direct relationship with the factory. While the workers await the outcome of the judicial process, the burden on their families has been significant. To help ease this burden, Specialized has made a humanitarian donation of $44k to a court administered fund to ensure the money reaches the workers affected.
Specialized would like to thank all the Non-Governmental Organizations advocating for the affected workers. Our commitment to a fair and equitable supply chain is stronger than ever. We encourage all parties directly involved to put the workers first and resolve the judicial proceedings quickly and in the workers' favor.