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The fire at the Bangladesh garment factory once again brings to light the substandard and unsafe methods resorted by factories working for multinationals.
The tragedy at Tazreen factory, a subsidiary of the Tuba Group, which makes products for Wal-Mart cost the lives of 112 workers as the unit had not taken any fire safety precautions.
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Most of these factories are located in crowded areas without basic facilities for workers.
MNCs depends on sweatshops in the under developed countries to source goods at cheaper rates.
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"Our thoughts are with the families of the victims of this tragedy. The Tazreen factory was no longer authorised to produce merchandise for Walmart. A supplier subcontracted work to this factory without authorization and in direct violation of our policies," Walmart said in a statement.
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Bangladesh, the world's second largest garments exporter after China has around 4,500 factories.
These factories manufacture garments for MNCs like Wal-Mart, Tesco, JC Penney, Kohl's, Marks & Spencer and Carrefour.
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Stating that the relationship with the supplier has been cancelled, Walmart said, "The fact that this occurred is extremely troubling to us, and we will continue to work across the apparel industry to improve fire safety education and training in Bangladesh."