Apparel exporters demand $10m in Debenhams dues

A platform representing three dozen local apparel manufacturers has demanded over $10 million payment for fashion items they supplied to the UK retail giant Debenhams.
At a press conference at the Economic Reporters Forum (ERF) in Dhaka yesterday, they said they will file a case against the local forwarder of the now-bankrupt British store chain unless the payment is made within 15 days.
Md Zahangir Alam, convener of the Debenhams vendors’ community platform, said that due to the negligence of the forwarder Expo Freight Limited (EFL), they have not received the payment to date.
The 36 vendors were supplying readymade garments (RMG) to Debenhams, a 150-year-old UK-based public limited company.
As Debenhams was a highly reputable company in the UK and other Western markets, Alam said they were selling the goods through sales contracts.
“The payment terms were to surrender the bill of lading to the nominated forwarder, EFL in this case, after receiving the export proceeds in the bank,” he said.
“We have been supplying the goods for the past decade following these terms,” he added.
Alam said the 36 companies supplied garments worth $70 million before Debenhams went bankrupt due to the Covid-19 pandemic. “Out of the $70 million, the suppliers have received nearly $60 million over the last four years, but $10 million remains unpaid.”
“Now, Expo Freight Limited is legally responsible for paying the arrears to the suppliers as it handled the shipments to the now-bankrupt British retailer Debenhams,” he said.
“We have relentlessly tried to resolve this matter and to some extent, we have succeeded. But due to the negligence of the EFL, we have not received the export value to date,” said Alam.
On April 9, 2020, Debenhams filed for liquidation in the UK and the court appointed an administrator.
Subsequently, the Bangladeshi vendors came together and formed the platform called the Debenhams Vendors Community.
Alam said the main objective of this community is to negotiate, liaise, realise the dues and make collective decisions regarding the goods lying in the port and transit.
He said that among the 36 suppliers, whose total export value exceeds $5 billion annually, many are small and medium-sized companies that cannot absorb such losses.
“These companies will face unrecoverable losses if the arrears are not paid on time,” he added.