Bangladesh: Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Polish fashion retailer LPP S.A. have jointly issued a statement to address an ongoing dispute regarding claims associated with invoices of FES Retail. They also reaffirmed their commitment to sustaining a stable sourcing partnership in Bangladesh.
According to United News of Bangladesh, the statement, released on Tuesday, highlighted a shared interest between the two organizations in ensuring legal certainty, protecting employees, and maintaining stable business operations, as well as future expansion within Bangladesh. The joint declaration was signed by BGMEA President Mahmud Hasan Khan and LPP S.A.’s Purchasing and ESG Director, Dorota Jankowska-Tomkow.
The entities clarified that the dispute being publicly discussed involves contractual and invoice-related claims between two business entities. They asserted that LPP itself is neither a debtor nor legally liable for these disputed obligations. LPP stated that it regularly fulfills all outstanding liabilities with its direct suppliers and business partners in Bangladesh, adhering to contract terms.
BGMEA acknowledged LPP’s stance that any claims related to such liabilities should be directed towards the entities legally responsible. Both sides recognized the commercial challenges faced by the affected factories and agreed that negotiations to resolve the liabilities should be conducted with the legally liable parties. LPP expressed its willingness to facilitate constructive dialogue as necessary while safeguarding its legal position.
LPP further clarified that their recent review of certain sourcing activities in Bangladesh was primarily intended to protect local employees and ensure a stable and fair operating environment. The company emphasized that the review was not against Bangladeshi manufacturers and would not impact its commitment to fulfilling direct contractual obligations.
BGMEA and LPP stressed that disputes involving a limited number of third parties should not negatively impact the broader interests of Bangladesh’s ready-made garment sector. This sector includes over 350 manufacturers currently conducting business with LPP. Both organizations urged all parties to avoid generalized or misleading publicity that could harm other manufacturers, workers, or the longstanding commercial relationship between LPP and Bangladesh.
To ensure a fair resolution, BGMEA announced its intention to engage with relevant ministries, authorities, and industry stakeholders. This engagement aims to protect LPP officials and employees from improper harassment, pressure, or unfounded legal complications.
The joint statement was issued without prejudice to due legal processes or the rights of any party to pursue legitimate claims against entities legally liable for the disputed obligations. Reaffirming their commitment to the growth and sustainable development of Bangladesh’s garment industry, BGMEA and LPP vowed to work together towards a fair, transparent, and mutually acceptable resolution while ensuring safe and stable business operations in Bangladesh.