OPERATIONS

Gap: Report of Kids’ Sweatshop ‘Deeply Disturbing’

BY CSA STAFF

New York City, The president of Gap North America said a subcontractor accused of using child labor to sew Gap clothes in India has been fired and the Gap will not sell clothes made in the New Delhi sweatshop, according to a report on CNN.com.

“It’s deeply, deeply disturbing to all of us,” Gap President Marka Hansen said after watching video of the children at work. “I feel violated and I feel very upset and angry with our vendor and the subcontractor who made this very, very, very unwise decision.”

Hansen blamed the alleged abuse on an unauthorized subcontractor for one of its Indian vendors and said the subcontractor’s relationship with the Gap had been “terminated.”

She said the garments allegedly produced by the children represented a small portion of a single order placed with the vendor and that the clothes would not be sold in stores, the report said.

“We strictly prohibit the use of child labor,” Hansen said in a statement. “Gap has a history of addressing challenges like this head-on, and our approach to this situation will be no exception.

“In 2006, Gap Inc. ceased business with 23 factories due to code violations,” Hansen said. “We have 90 people located around the world whose job is to ensure compliance with our Code of Vendor Conduct.”

The report first appeared Sunday in Britain’s Observer newspaper.

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OPERATIONS

Reebok Names President of North America Unit

BY CSA STAFF

Canton, Mass., Reebok International said Thursday the company has named Matt O’Toole as president of Reebok North America, the brand’s largest business unit.

Canton, Mass.-based Reebok said O’Toole, whose appointment becomes effective Nov. 5, is currently the president and CEO of Reebok-CCM Hockey, a wholly owned subsidiary of Reebok that is based in Montreal.

In his new role, O’Toole will be responsible for all of the region’s brand operations, including marketing, product merchandising, sales, finance, operations and owned retail stores. He will continue to report directly to Paul Harrington, president and CEO of Reebok.

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OPERATIONS

Children’s Place Names New General Counsel

BY CSA STAFF

Secaucus, N.J., The Children’s Place Retail Stores appointed Patricia Gray to serve as senior VP, general counsel. Gray will report directly to Susan Riley, executive VP, finance and administration.

Gray most recently served as senior VP, chief legal officer and secretary of Panera Bread Co. Prior to that, Gray held the position of senior VP, general counsel and secretary of Arch Wireless, Inc.

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