
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, August 10, 1995                   TAG: 9508100042
SECTION: BUSINESS                    PAGE: B-7   EDITION: METRO 
SOURCE: Associated Press
DATELINE: EL MONTE, CALIF.                                LENGTH: Medium

CHAINS INVESTIGATED FOR SWEATSHOP DEALS

Two big retail chains, Montgomery Ward and Mervyn's, are being investigated in connection with a sweatshop where dozens of Thai nationals were discovered working in virtual slavery.

A subpoena has been issued to Mervyn's department store, state officials said, and they are preparing to serve others to Montgomery Ward.

``Two retail stores, from initial evidence, appear to have been dealing directly with the contractors,'' state Labor Commissioner Victoria Bradshaw said.

If investigators find direct links between the retailers and the sweatshop, the companies could be held liable for the workers' back wages, estimated at more than $3.5 million, she said.

The companies' addresses were discovered on shipping labels on boxes of garments found during last week's raid of three apartments converted into a mill that authorities said did business as SK Fashions.

Chicago-based Montgomery Ward has 380 stores in 39 states. Mervyn's, part of Minneapolis-based Dayton Hudson Corp., has 294 stores in 16 states.

State and federal agents raided the sweatshop Aug. 2 and found 64 Thai nationals, eight of whom were arrested. Some of the workers said they were held in indentured servitude for years as garment makers to work off immigration costs. They said they worked 17-hour days at $1 per hour.

Two other people were arrested later. The 10 suspects face charges ranging from violations of state minimum-wage regulations to federal smuggling laws.

A Mervyn's spokeswoman said the company could find no record of having received clothing from the sweatshop.

``At this point, we just don't know if we're involved at all,'' said Sandra Salyer. ``Hopefully we're not involved, because judging by what I've read in the newspaper, it was a pretty frightening place.''

Salyer said buyers for the chain's Southern California stores are now calling nearly 1,000 vendors to ask whether they may have subcontracted work to the factory.

Montgomery Ward spokeswoman Sarina Butler said her company has found no records of dealings with SK.

``It's possible they would be a subcontractor for a company we do business with, but there's no way to know that,'' she said.

by CNB