Beximco Textiles has officially closed all of its factories, resulting in the termination of its entire workforce effective 28th February. The decision, stemming from a severe financial crisis, was made during a meeting of the Advisory Council Committee on Reviewing the Labour and Business Situation of Industrial Establishments in Beximco Industrial Park, chaired by Labour and Employment Adviser Brig Gen (retd) M Sakhawat Hossain on February 26.
According to a notice issued by Beximco, all workers at 14 facilities, including Beximco Limited (excluding Yarn Unit-1), have been laid off due to a lack of work resources. The layoffs, which began on 16th December 2024 and continued through 5th February 2025, culminated in the complete shutdown of operations on 28th February. The company has committed to paying the workers’ dues in phases starting 9th March, with funding provided by the Ministries Of Finance and Labour.
Beximco’s Managing Director Osman Kaiser Chowdhury was present at the advisory meeting, where the closure notice was signed. The company estimates it will require between Taka 550-600 crore to settle the outstanding wages in compliance with labour laws. Previously, Beximco had sought Taka 400 crore in assistance to maintain factory operations, but both the government and Janata Bank did not respond to the request.
The financial woes of Beximco Group are compounded by the ongoing legal troubles of its owner, Salman F Rahman, who has been imprisoned since 13th August following the fall of the Hasina-led Awami League Government. In September, the Criminal Investigation Department filed multiple cases against Beximco executives for alleged money laundering, further straining the company’s financial stability.
In the wake of these developments, the interim Government had initially planned to sell shares of certain Beximco Group companies to cover the workers’ dues. However, complications arose, leading to the decision to utilize government funds for the payments instead.
The textile and apparel sector has been a vital part of Bangladesh’s economy, with Beximco Textiles historically being one of the highest exporters through Janata Bank. Over the past six years, the company has averaged monthly exports of US $ 32 million, reaching US $ 59 million in 2022. However, with the closure of Beximco’s factories, the future of many workers and the company’s contributions to the economy remain uncertain.
