Polish brand LPP to continue business in Bangladesh, will help exporters recover dues
The top Polish apparel brand has withdrawn its decision following a meeting with the BGMEA.
Polish apparel brand LPP has decided to retract its decision to suspend business operations in Bangladesh, 12 days after announcing the halt over payment disputes with local exporters.
The brand will continue its business as usual, Mahmud Hasan Khan Babu, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told The Business Standard today (10 August).
Following a meeting between BGMEA leaders and LPP representatives today, he said, both parties drafted a joint statement to officially announce the withdrawal of the suspension.
Keep updated, follow The Business Standard's Google news channel
"They [LPP] will continue their business. However, it was decided that LPP will assist Bangladeshi exporters in recovering payments for goods shipped to a Russian company," the BGMEA president said.
The dispute stems from an estimated $40 million in unpaid export proceeds owed to around 40 Bangladeshi suppliers by a Russian company, FES Retail. Local exporters allege that LPP's Dhaka office facilitated the deals with the Russian buyer.
After some exporters filed a lawsuit in a Dhaka court, law enforcement agencies reportedly raided the residences of several officials from LPP's Dhaka office.
Amid the escalating situation, the Polish brand announced the suspension of its business with Bangladesh on 30 July.
Currently, approximately 772 Bangladeshi factories supply apparel to LPP, with annual exports exceeding $700 million.
