British multinational retailer Debenhams has posed a new roadblock to its around 40 suppliers in Bangladesh after it reportedly sought a 90 per cent discount on orders placed!
As per media reports, this move by the struggling British department store which sources around US $ 120 million worth of apparel items from Bangladesh yearly, has put its supplying factories in the country in a precarious situation.
Further, the company owes around US $ 66 million to its vendors, of which, around US $ 40 million worth goods are still lying with different factories while US $ 26 million worth apparel products are reportedly stuck up in various UK ports.
“This is absurd. We are uncertain about receiving payment as the company has appointed administrators,” underlined Managing Director of Design Source and coordinator of Debenhams Vendors Community in Bangladesh, Zahangir Alam.
The vendors in Bangladesh are now planning a virtual meeting with the retailer’s administrator to demand their dues.
Debenhams is currently in what it describes as a ‘light touch’ administration and has appointed restructuring firm FRP Advisory to protect it from legal action from creditors. It has also reportedly furloughed majority of its staff under the Government’s coronavirus job retention scheme.
Even in Bangladesh, the retailer has allegedly laid of all its 69 employees, which is reportedly in violation of the agreement signed with the Bangladesh Investment Development Authority.