Beximco Group, a major Bangladeshi conglomerate, is facing a severe liquidity crisis, forcing its Shinepukur Ceramics and 23 other factories, primarily in the ready-made garment and textile sectors, to halt operations. The closures stem from the group’s inability to open letters of credit (LCs) for raw material imports since August, following political changes and the arrest of Vice Chairman Salman F Rahman, a key figure in Bangladesh’s financial sector.
It witnessed worker Protests, around 40,000 workers at Beximco Industrial Park, Gazipur, have staged protests over unpaid October salaries, disrupting major highways. Monthly wages amount to Tk 80 crore equivalent $7.3 million.
Beximco group owes Tk 23,000 crore ($2.1 billion) in loans to Janata Bank, with Tk 19,000 crore ($1.7 billion) classified as non-performing. Banks are restricted from further lending due to regulatory limits.
Their management is urging workers to wait until November 20 for salary payments while seeking government intervention. However, officials suggest asset sales or other internal measures as solutions.
Stakeholders, including the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), have emphasized that resolving the crisis is the company’s responsibility, urging clear communication and immediate action to address labor and financial challenges.
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