A group that represents thirty-six regional clothing producers has formally demanded payment of more than US $ 10 million for clothing that has been delivered to the UK’s largest retailer, Debenhams.
The group threatened to sue Expo Freight Limited (EFL), a local forwarder, if they are not paid within 15 days, during a news conference on Saturday at the Economic Reporters Forum (ERF) in Dhaka.
The coordinator of the Debenhams vendors community platform, Md. Zahangir Alam, clarified that EFL’s carelessness in managing the shipments to the now-defunct British shop is the reason for the payment delay. Alam added by saying thay they have been supplying garments to Debenhams for the past decade which was based on established sales contracts and required the surrendering the bill of lading to the nominated forwarder after the export proceeds had been received.
The suppliers have received about US $60 million in payment over the last four years, but US $ 10 million remains outstanding despite having supplied goods valued at US $ 70 million before Debenhams’ bankruptcy. “Expo Freight Limited is now legally obligated to settle this debt,” said Alam.
Debenhams filed for liquidation in the UK on 9th April 2020, prompting the Bangladeshi vendors to unite under the Debenhams Vendors Community to address their financial woes collectively. Alam highlighted the critical situation, noting that many of the suppliers are small to medium-sized companies that cannot withstand the financial blow of unpaid dues. “If these arrears are not resolved promptly, these companies could face unrecoverable losses,” he
