Target supplier pays workers $6m back pay

GUATEMALA CITY — More than 750 garment workers at Guatemala’s Koa Modas factory have received close to $6 million in back wages and severance after Korean apparel group SAE-A Global Trading agreed to remedy extensive "wage theft" in its Target supply chain.

The settlement, coordinated with the Worker Rights Consortium (WRC), is understood to be the largest single-factory back pay recovery for garment workers in Central America. The money addresses more than $5 million in unpaid severance and around $460,000 in outstanding wages owed when owner Sabrina Chang shut the Koa Modas plant in February 2025.