The world’s second-biggest fashion retailer, H&M, has announced it has decided to gradually stop sourcing from Myanmar, as reports of labour abuses in garment factories in the country increase.

The company is the latest to cut ties with suppliers in the country, and follows similar action taken by Zara owner Inditex, Primark, Marks & Spencer and others.

“After careful consideration, we have now taken the decision to gradually phase out our operations in Myanmar,” H&M told Reuters on Thursday.

“We have been monitoring the latest developments in Myanmar very closely and we see increased challenges to conduct our operations according to our standards and requirements.”

The company said on Wednesday it was investigating 20 alleged instances of labour abuse at Myanmar garment factories that suppled it, as a UK-based campaign group said cases of alleged abuses including wage theft and forced overtime had multiplied since a military coup in February 2021.

The junta takeover has plunged Myanmar into a political and humanitarian crisis. The garment sector is a key employer in the south-east Asian country, where mostly women workers produce clothes and shoes for big brands in more than 500 factories.

Some experts suggested the trend of multinational companies pulling out could ultimately leave workers there worse off.

Vicky Bowman, the director of the Myanmar Centre for Responsible Business and former British ambassador to the country, said: “I regret H&M’s announcement, as it will have a negative impact on thousands of women workers in Myanmar.”

H&M said its withdrawal would follow a “responsible exit framework” developed by IndustriALL, a global union that has been campaigning for brands to stop doing business in Myanmar.

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Big corporations in other sectors have also withdrawn from Myanmar, with the oil companies TotalEnergies and Chevron announcing their exit in January last year.

The Myanmar government was approached for comment.