700 workers lose jobs after ML Intimate in Cambodia closes doors
On 27 April, 700 workers from the ML Intimate Apparel factory took to the streets of Poipet, Cambodia, after the factory had announced its bankruptcy and shut down without prior notice to its workforce. The shutdown follows after a longstanding dispute between factory management and workers over severe obstruction of workers’ right to organise and several instances of delayed wage payments. There are strong concerns that ML Intimate, owned by Hong Kong based Magic Link Garment Ltd, will not fulfill its obligations to pay workers their owed wages and severance.
The factory’s closure came in the aftermath of Dutch lingerie brand Hunkemöller ceasing business, after other buyers like Thirdlove and Fenty had already done so. The factory’s reputation had deteriorated over the past few years, during which it often grossly violated workers’ rights. In 2023, after workers protested over outstanding wages, 10 workers were terminated. Over the past 4 years, a group of workers unsuccessfully tried to register their union but faced severe obstruction by the employer and the Cambodian Ministry of Labour and Vocational Training. The workers made 14 attempts to register their union, but were told off for a variety of bizarre reasons, including negligible spacing and indentation “errors”. Elected former union president Keo Vanvannak was fired twice by ML Intimate over the past years, as were several other unionists. Interference by Hunkemöller led to reinstatement of the workers but not to the workers finally being able to fully enjoy their right to organise.
Elected union president of Worker’s Protection Union of ML Intimate (KAPEA), Mr Tonich remarked: “It’s been a long struggle for us in the face of delayed wages, forced overtime, inadequate support for injured workers, and the long-standing obstruction of independent union organising.
For more than four years, we organised lawfully and peacefully. We’ve worked hard together as a union to improve working conditions at the factory, despite being targeted and subject to unfair, illegal dismissals, retaliation, constant surveillance, intimidation, threats, and harassment. Many workers were forced to leave the union and until today, our union has still not been able to register at the Ministry.
Now that the factory has closed, workers need the company and buyers to act responsibly.
We urge Hunkemöller to continue monitoring the situation and to ensure that ML pays all wages, benefits, compensation, and damages owed under Cambodian law. Workers expect the company to keep its promise and pay in full at the latest on 28 May 2026. Many of us gave years of our lives to this factory, and with the ongoing border tensions between Cambodia and Thailand and economic instability in Banteay Meanchey, it will not be easy for us to find work.”
Khun Tharo, programme manager at labour rights organisation CENTRAL said: “Workers at ML Intimate are left in a very precarious situation. Poipet is located right on the border with Thailand. Earlier this year, the factory closed for several weeks due to the border conflict between Cambodia and Thailand. Most workers were forced to flee their homes. On top of that, the increased US import tariffs have led to strong fluctuations and uncertainty in the garment sector in Cambodia, as roughly 25% of exports are shipped to the US. Overall, there are not many options for employment in the Poipet area and many workers fear not being able to find any job at all without having to commute much longer or relocate to areas like Phnom Penh to find a job. In a country where wages in the sector are insufficient and many workers already rely on problematic loan schemes or second jobs, receiving severance pay and a last salary are indispensable.”
One of the final meetings of the សហជីពកម្មករនិយោជិតក្រុមហ៊ុន អិមអិល អុិនធីមេត អឹភែរឺល (ខេមបូឌា) / ML Intimate Apparel (Cambodia) Ltd. Workers’ Union leaders and activists on 3 May 2026.
We call on ML Intimate and Hunkemöller to:
Ensure all workers are paid their outstanding wages, unused annual leave, and due severance or seniority payments in accordance with Cambodian law;
Ensure workers also receive any additional compensation owed under Cambodian law, including damages and payment in lieu of notice where applicable. Since ML Intimate has not filed for bankruptcy or entered judicial liquidation, all workers should receive all statutory entitlements owed to them despite the closure;
Ensure international guidelines on responsible exit are honored, including through meaningful consultation with workers, reasonable notice, and concrete mitigation of the harms caused by disengagement, in line with the OECD Guidelines for Multinational Enterprises and the OECD garment-sector due diligence guidance.