By  on April 9, 2010

The University of Wisconsin-Madison said today it has ended its licensing agreement with Nike Inc. as a result of issues the school has with how the shoe company handled problems with contract factories in Honduras. The school alleged that Nike has failed to adequately address problems resulting from the closure of two Honduran factories in January 2009. The factories were not owned by Nike, but were contracted by the brand to produce licensed apparel for universities and colleges, according to the University of Wisconsin-Madison. The two factories were reportedly closed without notification and there are said to be outstanding issues with severance pay for the laid-off workers. The licensing relationship between the school and Nike generated $49,000 in royalties last year. The university has a code of conduct that governs the activities of companies under contract.

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