LPP reaffirms Bangladesh sourcing commitment despite FES dues
European fashion retailer LPP has reaffirmed its commitment to sourcing apparel from Bangladesh, saying financial complications linked to FES will not affect its contractual obligations to local garment manufacturers.
The Polish group sources more than $750 million in apparel annually through a network of over 350 manufacturing partners in Bangladesh, according to a press release.
The company described itself as the eighth-largest buyer of garments from Bangladesh and said its sourcing activities supported thousands of jobs and contributed to the country's industrial development.
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Addressing recent financial complications, LPP said FES owed it Tk3,650 crore, equivalent to approximately 1.1 billion Polish zlotys, resulting in substantial write-offs for the retail group.
LPP said it had absorbed the financial impact of the third-party obligations and was handling the situation transparently.
The retailer stressed that the issue would not compromise its long-standing partnership with Bangladesh. It pledged to continue its sourcing operations, honour all direct contractual obligations, and maintain stable, transparent relationships with Bangladeshi garment manufacturers.
"Bangladesh remains a cornerstone of our global supply chain. Despite being the party most severely affected by the FES matter, our priority is ensuring the stability and long-term prosperity of Bangladesh's garment sector and the local workforce that powers it," the company said.
LPP said it would continue working with local manufacturers and industry bodies to improve supply-chain predictability and support Bangladesh's economy and garment industry.
