Janata Bank moves to auction Beximco factories, BEL Tower amid default loan recovery push
Int’l entities eyeing to revive Beximco factories express shock at decision; govt for reopening shuttered textile units
State-owned Janata Bank has issued an auction notice to sell the factories, land and corporate headquarters of Beximco Limited as it seeks to recover more than Tk1,322 crore in defaulted loans.
The development comes even as the government pursues an international leasing arrangement to revive the troubled conglomerate's textile operations.
On 25 November, Janata Bank published advertisements across multiple newspapers announcing the sale of Beximco's mortgaged assets to settle the outstanding loans, including accrued interest calculated up to 31 October. Interested bidders have been asked to submit their offers by 10 December.
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At the same time, the bank also called an auction for the assets of Assess Fashions Limited, which owes Tk1,133 crore in default loans as of 31 October. The company is also referred to as Esses Fashions Limited and is part of the Beximco Group.
According to Janata Bank's auction notice, the Beximco assets up for sale include 3,527 decimals of land and factory buildings in Gazipur, 146.65 decimals in Ashulia and 440 decimals in Narayanganj. The bank has also moved to auction the company's 15-storey head office, BEL Tower, located in Dhaka's Dhanmondi.
This follows an earlier auction notice published on 21 November for assets belonging to three other Beximco Group entities: International Knitwear & Apparel Limited's Unit-1 and Unit-2 valued at Tk1,754.7 crore, Urban Fashions valued at Tk724.26 crore and Apollo Apparels worth Tk816.4 crore.
Revival, Ecomilli express shock
The sudden auction move comes at a time when two international entities – Japan-Bangladesh sustainability venture "Revival" and US-based expatriate organisation "Ecomilli" – are collaborating with the government to reopen the Beximco's factories.
The two firms said in a statement that Beximco's factories were forced to shut down due to a prolonged debt crisis, and they stepped forward with a recovery plan in hopes of reviving operations through a lease agreement.
Revival and Ecomilli, through Benchmark PR, expressed shock at Janata Bank's abrupt decision to sell the immovable assets and machinery while discussions regarding the lease were still underway.
They said they had already held extensive meetings with surrounding communities, workers' families, small businesses, schools, and local shop owners – groups whose livelihoods depend heavily on the factories – and that all stakeholders were anticipating an imminent reopening.
The organisations said the decision to auction off national industrial assets should be taken with caution, transparency, and consultation with experts, workers, and shareholders. They urged Janata Bank to reconsider its move, warning that the auction could undermine a rare opportunity for foreign investment led by skilled expatriate Bangladeshis.
They said the step could also discourage future international investors who are showing renewed interest in Bangladesh's textile and apparel sector.
Repeated attempts by The Business Standard to reach Janata Bank's Managing Director and CEO Md Mazibur Rahman for comments were unsuccessful, as he did not respond to phone calls or WhatsApp messages.
Beximco's Managing Director Osman Kaiser Chowdhury also did not respond.
Govt for reopening factories
Meanwhile, government agencies, including the labour ministry, have been actively negotiating to reopen Beximco's internationally accredited textile units in order to safeguard thousands of jobs and prevent significant losses in export earnings.
Multiple meetings have been held involving the Finance Division, Bangladesh Bank, Janata Bank, and other lenders to facilitate the process.
In May, Japan's Revival Project Limited submitted an expression of interest (EOI) to lease the factories, backed by a letter of comfort from Beximco. The labour ministry convened its first meeting on 22 July regarding the reopening, followed by several others.
An 11-member advisory committee chaired by Labour and Employment Adviser Brigadier General (retd) M Sakhawat Hossain supported the Revival proposal, as did another high-level five-member advisory panel formed to accelerate business and industrial activities.
The Bangladesh Bank reportedly signalled support for a leasing arrangement, and Revival subsequently prepared investment plans, including an initial injection of $20 million in working capital and a long-term investment target of up to $100 million. Ecomilli is expected to finance the plan.
Beximco has told authorities that several foreign buyers are waiting for production to resume.
Janata Bank board opts for auction
A draft tripartite agreement prepared on 8 October outlined that Beximco's factories would be operated by Revival, which would receive a 1.5%-2.5% commission from export earnings.
All remaining proceeds, after operational expenses, would go toward repaying Janata Bank and other lenders. Beximco would not receive direct funds under the arrangement.
Beximco Limited projected that its textile units could generate a net profit of Tk380 crore by December 2026 if operations resumed in October this year, according to its response to a Dhaka Stock Exchange query.
Janata Bank's board approval for the agreement was scheduled for 18 November, later postponed to 20 November.
But, instead of approving the leasing proposal, the board opted to move towards auctioning the factories and mortgaged assets – an abrupt shift that has raised concerns among all parties involved in the revival effort.
