H&M Splits With ‘Buy From A Black Woman’ Pays $83K Debt

H&M has ended its partnership with the non-profit Buy From A Black Woman (BFABW) and paid the $83,000 it owed the organization almost a month after it was due, as reported by ADWEEK.

BFABW was founded by Nikki Porcher in 2016. It provides Black women with educational programs, an online guide to hundreds of female-owned Black businesses, and funding to help Black women business owners achieve success.

In 2021, H&M partnered with BFABW, hosting special events, and participating in its business accelerator, and organizing activities and donations tailored to Black-owned businesses.

How the partnership turned sour

Porcher said the first two years of working with H&M were smooth, but things shifted in 2023 when the partnership moved from the sustainability team to the inclusivity and diversity team. She claimed she was excluded from meetings and key decisions.

The situation came to a head earlier this year when a March 2 International Women’s Day (IWD) event that was outlined in their contract was canceled. Porcher had agreed to a March 19 denim activation at a Black woman-owned coffee shop but later learned it was meant to replace the IWD event. WWD reports that she pushed back in emails, citing the event’s contractual importance and its relevance amid nationwide rollbacks in DEI. She also questioned holding it on a weekday, given the community’s scheduling needs.

H&M responded that the event was never a contractual requirement and denied any breach. Porcher then sought legal counsel. She then claimed a breach of contract over an outstanding payment of $83,000 that was due on February 17. After some back-and-forth, both parties agreed the contract was no longer salvageable. Porcher declined an initial termination offer from H&M that included $100,000 in exchange for continued use of the BFABW name and programs and a non-disparagement clause.

A revised agreement with a mutual no-sue clause was reached, and the partnership officially ended on March 12. Porcher received the overdue payment on March 14, nearly a month late.

The reality for Black-owned businesses after the death of George Floyd

H&M and BFABW’s partnership started after the death of George Floyd, a time when companies and brands were making big promises to Black-owned businesses. Nearly five years on, several of these companies have rolled back these efforts.

A Wall Street Journal examination of 13 million workers at S&P 500 companies found that DEI efforts have not significantly impacted those who climb the corporate ladder.

Porcher told WWD that she thinks there will be a lot more Black-owned business owners who will have a similar experience to her. “I want them to know that they are not by themselves. Entrepreneurship, especially as a Black woman, is such a lonely road.”

Image: Buy From A Black Woman

Corrections: A previous version stated that the H&M and BFABW partnership introduced a grant and accelerator program; both predated the partnership. The timeline has been updated to reflect that the situation came to a head this year, not in 2024. The article also notes also that BFABW was aware of the outstanding payment before seeking legal counsel.