BGMEA, LPP clarify invoice dispute, reaffirm sourcing partnership
BGMEA and LPP say disputes involving a few third parties should not affect Bangladesh’s wider RMG sector and its more than 350 manufacturers working with LPP.
Polish fashion retailer LPP SA has reaffirmed their commitment to maintaining a stable sourcing partnership in Bangladesh, and clarified that it is neither a debtor nor legally liable for the disputed obligations involving FES Retail.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Polish fashion retailer LPP SA issued a joint statement today (11 August), clarifying the ongoing dispute over claims involving invoices of FES Retail.
In the statement, the two organisations said they share a common interest in ensuring legal certainty, protecting employees and maintaining stable business operations and future expansion in Bangladesh.
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They clarified that the publicly discussed dispute concerns contractual and invoice-related claims involving two business entities, while LPP itself is neither a debtor nor legally liable for the disputed obligations.
LPP said it regularly settles all outstanding liabilities with its direct suppliers and business partners in Bangladesh in accordance with the terms of its contracts.
BGMEA acknowledged LPP's position that any claims relating to such liabilities should be directed to the entities legally responsible for them.
At the same time, both sides recognised the commercial difficulties faced by the affected factories and agreed that negotiations to resolve the liabilities should be conducted with the legally responsible parties. LPP said it would assist in facilitating constructive dialogue where necessary, while safeguarding its own legal position.
LPP also clarified that its recent review of certain sourcing activities in Bangladesh was primarily aimed at protecting its local employees, ensuring legal clarity and maintaining a stable, predictable and fair operating environment.
The company stressed that the review was not directed against Bangladeshi manufacturers and would not affect its commitment to fulfilling its direct contractual obligations.
BGMEA and LPP further emphasised that disputes involving a limited number of third parties should not adversely affect the wider interests of Bangladesh's ready-made garment (RMG) sector, including more than 350 manufacturers currently doing business with LPP.
They urged all parties to avoid generalised or misleading publicity that could harm other manufacturers, workers or the longstanding commercial relationship between LPP and Bangladesh.
As part of efforts to ensure a fair and orderly resolution, BGMEA said it would engage with relevant ministries, authorities and industry stakeholders to help ensure that LPP officials and employees are protected from improper harassment, pressure or unfounded legal complications.
Reaffirming their commitment to the growth and sustainable development of Bangladesh's garment industry, BGMEA and LPP pledged to work together toward a fair, transparent and mutually acceptable resolution while ensuring safe, stable and uninterrupted business operations in Bangladesh.
