Otto Group Statement on Royal Knitting Thailand
The "Clean Clothes Campaign / Kampagne für Saubere Kleidung e.V. (CCC)" accuses the Otto Group of wrongly failing to advocate for the rights of former workers at the Thai factory Royal Knitting in accordance with its capabilities and alleged legal obligations. The wages owed by the factory to the dismissed workers have been confirmed by the court, but they are based on payments from 2020, while the Otto Group's business relationship with Royal Knitting ended in 2017.
The Otto Group takes the statements of the CCC very seriously and has thoroughly investigated them. Detailed examinations of the available information have once again confirmed that our business relationship with the Royal Knitting factory ended in 2017. At the time of the factory's closure in 2020, the Otto Group had not produced any goods there for three years. Therefore, we cannot comment on the events of 2020, which the CCC refers to.
The Otto Group fully met its payment obligations. During our collaboration, we also consistently advocated for fair and safe working conditions for the workers.
Therefore, we reject the allegations made by the CCC against us for several years as incorrect and unjustified. For this reason, we took legal action against the false claims in the summer of 2024. The CCC subsequently signed a legally binding cease-and-desist declaration.
We have immediately and thoroughly examined every piece of evidence shared with us by the CCC. The copies of labels and data sheets provided by the CCC are uncontrollable documents that may turn up everywhere and, in particular, may come from leftovers of older orders. Our records indicate, in any case, that the goods referenced in the evidence were produced in a different factory. Additionally, we have reports from a quality manager who conducted the final inspection of the mentioned goods on-site, confirming that their production did not take place at the Royal Knitting factory. Furthermore, we have pickup receipts from the logistics company that demonstrate the goods were collected at the originally contracted factory – not at the Royal Knitting factory. We have no evidence that the goods were produced anywhere other than the factory contracted by our business partner.
Despite these clarifications, the CCC continues to insist on its demands and holds the Otto Group responsible, even though the business relationship has ended in 2017.
We would like to emphasize once again that the Otto Group has been committed for many years to improving working and environmental conditions in its supply chains and works closely with suppliers and other relevant partners to ensure compliance with its standards and applicable national laws and regulations.
Despite differing views, we remain firmly committed to collaborating with all parties involved to contribute to clarifying the situation.