The bankruptcy of Global Brands Group (GBG) Holding Limited’s American subsidiary, which sourced garments from around 10 manufacturing units in Bangladesh, has given rise to apprehensions amongst garment makers here in Bangladesh as GBG USA owes them money.
Reports maintained this adding the North American division of GBG Holding — as per the company’s websites, GBG USA is an associated organisation of Hong Kong-based Fung Group even as they supply apparel and footwear wholesale to Nordstrom Inc., Macy’s Inc., and other US department stores as well as warehouses, off-price retailers and Amazon.com Inc. — filed for Chapter 11 protection in the US Bankruptcy Court of New York, putting its apparel and footwear brands up for sale with help from a US $ 16 million bankruptcy loan.
Meanwhile, speaking to the media, Vice-President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Shahidullah Azim, reportedly, maintained that GBG USA sourced garments from around 10 to 12 factories in Bangladesh.
We are keeping an eye on the whole matter, reportedly, maintained the BGMEA Vice-President while assuring of necessary steps to ensure garment makers in Bangladesh do not have to face any financial losses on account of GBG USA’s bankruptcy.
