Once a $10m exporter, Ctg's suit-maker Thianis now battles lawsuits, shipment delays
Company insists rent dues far lower
Highlights
- Thianis Apparels owes over $1m in rent arrears to Bepza and faces lawsuits
- A fire in 2017 and Covid-19 shutdowns left the company in deep financial trouble
- Bepza sealed the factory, cancelled its lease, and moved to auction assets
- Buyers, including Groupe Trium and Nordic Textile, filed court petitions to protect their goods
- Court issued stay orders on the auction; buyers warned of contempt if violated
Thianis Apparels Limited, once a promising suit maker with annual exports of $10 million, is now mired in unpaid rent, lawsuits, a factory shutdown, and suspended exports.
The company owes the Chattogram Export Processing Zone (CEPZ) more than $1 million in rent arrears, workers their jobs, and overseas buyers shipments already booked.
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Its downfall began with a devastating fire in 2017 that destroyed the factory and machinery. Owner Anisur Rahman, leading a UK joint venture, invested more than $4,00,000 in renovations and restarted production.
Then came the Covid-19 pandemic, which forced the factory to remain idle for nearly two years, abruptly halting its recovery and leaving it with mounting debts and no orders.
By the time operations resumed in 2022, the company's finances had worsened further. Rent arrears with the Bangladesh Export Processing Zones Authority (Bepza) ballooned from $1 million in late 2023 to $1.34 million by April 2025, including accumulated interest.
Thianis' request for a partial waiver was rejected, and Bepza initiated legal action, sparking a series of court battles that continue today.
Legal battles
In October 2024, the High Court ordered Thianis to pay $55,000 monthly towards rent and arrears – an arrangement the company could not maintain beyond March this year. In June, Bepza sealed the factory, cancelled its lease, and suspended its export permit.
The closure left around 700 workers unpaid, who staged protests at the CEPZ gates demanding wages.
On 15 July, Thianis secured a High Court ruling staying the lease termination and reinstatement of its export permit. But Bepza appealed, and an Appellate Division bench stayed that ruling on 29 July.
The following day, Bepza paid the due wages from its own funds. It then announced plans to auction Thianis' machinery, finished products, raw materials, and other assets – a move that alarmed global buyers awaiting shipments ahead of the next sales season.
The auction, scheduled for 16 September, blocked several shipments of export-ready apparel.
One such shipment of suits, vests, and trousers worth over $132,891 was fully packed and sealed in a container with an export permission number, but could not be sent to the port, claimed AHC Bangla Fashion Proprietor, a local buying house who supplies to global brands, in a writ petition.
On 12 August, the High Court stayed the auction for two months and ordered that the petitioner's goods be protected.
Other buyers also voiced concern. Norway-based Nordic Textile, one of Thianis' key clients, wrote to the Bepza chairman urging immediate intervention. It said the factory held about 3,300 metres of fabric – already paid for – along with development samples and SMS items vital for upcoming fashion cycles.
Trium alleges contempt of court
Canada-based Groupe Trium also raised alarm, saying Thianis retained more than 15,000 metres of its proprietary fabric worth $250,000.
On 4 September, a High Court bench issued a stay order suspending the auction. The order also covered Groupe Trium's imported goods under two commercial invoices, said Senior Supreme Court lawyer Shamsuddin Babul, who represented the firm.
In a certificate dated 18 September, he confirmed that the stay order remained in effect while the certified copy was being processed.
Babul told The Business Standard on Tuesday: "Buyers have filed petitions with the High Court. Responding to those petitions, the benches issued stay orders. Bepza appealed against two orders in the Supreme Court and had them vacated. However, the third order, issued in favour of Groupe Trium, is still in effect. Any attempt to proceed with the auction will be contempt of court."
CEPZ Executive Director Abdus Sobhan acknowledged receiving Groupe Trium's letter by email. "Our panel lawyers are working on the letter. I can't comment on the issue," he said.
Meanwhile, Groupe Trium urged Bepza to issue its Export Permit (EP) immediately so a shipment scheduled for early next week could proceed.
In a letter dated 15 September to Bepza and CEPZ top executives, Groupe Trium Vice President Alain Gauthier noted that Bepza "proceeded with the auction process" by publicly displaying its materials on 8 and 9 September, calling it "a clear violation" of the stay order.
"We will be left with no alternative but to immediately instruct our legal counsel to file formal contempt of court proceedings," the letter warned.
Advocate Babul also cited the Bepza Private Investors Protection Act, 1980, which he said prevents investors' property from being auctioned without court intervention. "This will tarnish Bangladesh's image as a safe investment destination," he cautioned.
Dispute over unpaid rent
Thianis Managing Director Anisur Rahman disputed Bepza's claim, insisting the dues were far lower.
"The real outstanding rent is about one-fourth of Bepza's figure," he said. "I am ready to pay whatever amount arbitration determines. Once operations resume, I have several foreign investors ready to provide financing," he added.
