Published : 11 Aug 2026, 10:53 PM
Updated : 08 Sep 2026, 09:32 AM
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Polish fashion retailer LPP have jointly moved to defuse a dispute over unpaid liabilities, stressing that legitimate commercial claims should be settled through due legal process.
Tuesday's joint statement comes after reports of outstanding payments to Bangladeshi garment factories, with the dispute centring on invoices linked to FES Retail.
LPP said it has no status as a debtor or legal obligation to settle FES Retail’s liabilities, while reaffirming its commitment to meeting its own contractual obligations to more than 350 suppliers in Bangladesh.
The company said it would not accept responsibility for debts owed by third parties.
LPP also clarified that its recent review of sourcing operations in Bangladesh was not intended to penalise local manufacturers.
Rather, the company said the review was necessary to establish legal clarity and protect its employees from harassment following public allegations over the unpaid claims.
The BGMEA, meanwhile, said it would work with relevant government ministries and industry stakeholders to help ensure a fair resolution.
The association also sought to ease pressure on LPP officials and ensure that claims are directed towards the parties legally responsible for them.
Both sides said the move reaffirmed their longstanding partnership and commitment to Bangladesh’s apparel industry.
The statement comes as the two organisations seek to prevent a dispute involving third-party liabilities from affecting the wider business relationship or the reputation of Bangladesh’s garment sector.
LPP has more than 350 garment suppliers in Bangladesh, the statement said, urging all sides to avoid misleading publicity so that disputes involving a few third parties do not damage the wider apparel industry.
