Factory Workers: We Were Locked In As Flames Spread

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"As this tragic event is still under official investigation by the authorities, and since Li & Fung will conduct our own investigation, it would be premature to comment on our prior assessment of the factory's compliance," the statement said.

Labor rights groups said the American clothing companies have an obligation to know where their clothing is being manufactured.

"They have the power to make demands on the factory owners, they don't do it though," Kernighan said. "Because they want to keep cutting the prices, and cutting the prices, and cutting the prices."

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