Beximco Group plans to announce layoffs across its 16 apparel factories in Gazipur Industrial Park, jeopardizing the livelihoods of 40,000 workers due to lack of orders and banking support since the ouster of Sheikh Hasina’s government in August. Despite assurances from the interim government, no support materialized, and Beximco spent Tk 300 crore over four months, mainly on wages.
The company requires Tk 60 crore monthly for wages but earns only Tk 5-6 crore from subcontracting, compared to previous revenues of $25-30 million per month. Global buyers are hesitant to resume orders without Letters of Credit (LCs), which banks refuse to issue without 100% margin requirements.
Beximco’s debt crisis is severe, with loans totaling Tk 50,000 crore, over 50% defaulted. The Bangladesh Bank appointed an executive director as a receiver to oversee the group, which faces criticism for failing to service its debts.
The layoffs, initially planned for 45 days, may extend, potentially leading to permanent factory closures. The group’s financial woes have broader implications for Bangladesh’s industrial and banking sectors, with political links tied to Salman F Rahman, Beximco’s vice-chairman and former adviser to Sheikh Hasina, currently in jail.
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