Bangladeshi apparel exporters are facing significant financial distress as Australian retailer Mosaic Brands Ltd has failed to settle dues amounting to nearly US $ 20 million for apparel products. The Melbourne-based company has not paid US $ 19.93 million to 22 Bangladeshi exporters for goods delivered under contracts stipulating payments within 120 days post-bill of lading submission.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has contacted the Australian High Commission in Dhaka on two occasions to seek intervention regarding this issue and plans to issue another formal letter soon.
Despite receiving the apparel, Mosaic Brands has cited ongoing financial difficulties, resulting in delayed payments for several months. The company has now requested discounts of up to 60 per cent from the affected exporters, intensifying the already precarious situation for these businesses.
In a move to address the concerns of its members, BGMEA requested reports on payment issues with Mosaic by 14th October. Following this feedback, the association intends to engage with the Bangladesh mission in Australia and relevant government ministries, including finance and foreign affairs, as well as the Bangladesh Bank and the National Board of Revenue, to pursue necessary actions.
Out of the total dues owed, US $ 15.20 million relates to goods that have already been dispatched, while US $ 4.72 million worth of products remains in the exporters’ possession.
Among the affected companies are Big Boss Corporation Ltd, Active Composite Mills Ltd, Savar Sweaters Ltd, and Oasis Fashion Ltd, among others.
Mosaic Brands, formerly known as Noni B Limited, represents one of Australia’s largest specialty fashion retailer groups, with brands including Millers, Rockmans, and Katies. The company operates approximately 1,000 stores nationwide. In a recent announcement, it stated plans to phase out several brands, including Rockmans and Autograph, while continuing to sell remaining inventory until Black Friday.
The situation poses a serious threat to the financial stability of Bangladeshi exporters, who have relied on Mosaic for years, highlighting potential vulnerabilities in international trade relationships.
