A group of 36 Bangladeshi apparel manufacturers has demanded over $10 million in outstanding payments from UK retail giant Debenhams, which went bankrupt in 2020. These manufacturers supplied readymade garments to Debenhams under a contract system managed by Expo Freight Limited (EFL), the forwarder responsible for handling the shipments. The suppliers claim that EFL’s negligence has delayed their payments.
At a press conference in Dhaka, Zahangir Alam, convener of the Debenhams Vendors Community, stated that out of $70 million owed, $60 million has been paid over the last four years, but $10 million remains unpaid. The vendors threaten to file a lawsuit against EFL if the payment is not settled within 15 days.
The suppliers, many of which are small and medium-sized companies, fear facing severe financial losses if the arrears are not cleared. They argue that EFL is legally responsible for the unpaid amounts since it handled the shipments to Debenhams. The vendors formed a collective platform to address the issue, negotiate payments, and make decisions regarding goods still in transit or at ports.
Debenhams, a 150-year-old British retailer, filed for liquidation in April 2020 due to financial struggles exacerbated by the COVID-19 pandemic.
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