Nine Bangladeshi buying houses are facing financial losses of more than Tk 500 million after shipping readymade garments to a Russian retailer at the request of Poland-based fashion giant LPP, but have yet to receive payment. The affected exporters have filed lawsuits and sought government intervention to recover their dues.
Nine Bangladeshi buying houses have become entangled in a payment dispute after exporting readymade garments to Russia, leaving them with outstanding dues exceeding Tk 500 million.
LPP, one of Bangladesh's largest international buyers of readymade garments, had previously instructed exporters to deliver products to its sales centres in different countries. However, during the Russia-Ukraine war, the Poland-based company reportedly emailed Bangladeshi exporters, asking them to ship goods to Russian retailer FES Retail, assuring them that payment would be made.
Relying on that assurance, the exporters supplied the garments to FES Retail. However, they have yet to receive payment for the shipments.
The affected businesses claim that while FES Retail received the goods, LPP was responsible for settling the payments. After repeated attempts to recover the money failed, the exporters filed lawsuits seeking payment.
Bangladesh Buying House Association President Abdul Hamid said the association had repeatedly requested LPP to clear the outstanding dues, but received no satisfactory response. He said the combined unpaid amount owed to the nine buying houses exceeds Tk 500 million.
BKMEA President Mohammad Hatem said the affected exporters have sought assistance from the Ministries of Foreign Affairs, Commerce, Finance, and Textiles and Jute. They have also informed the Russian and Polish embassies about the matter.
Industry experts stressed the need for government support to resolve the dispute, warning that similar payment risks could undermine the sustainability of Bangladesh's export trade beyond the readymade garment sector.
-HIS