Australian fashion retailer Mosaic Brands Ltd owes 22 Bangladeshi apparel exporters $19.93 million, creating financial strain for the suppliers. Despite longstanding business relationships and agreements requiring payment within 120 days after goods are shipped, Mosaic has delayed payments for several months, citing financial difficulties and requesting discounts of up to 60%.
Bangladesh Garment Manufacturers and Exporters Association has contacted the Australian High Commission in Dhaka and is planning further action to resolve the issue. Of the $19.93 million owed, $15.20 million covers goods already shipped, while $4.72 million worth remains unsent.
Mosaic, which operates brands like Millers, Noni B, and Rivers, is winding down several others due to financial struggles. Exporters, such as Padma Satel Arab Fashions Ltd and Big Boss Corporation Ltd, are owed millions for goods shipped earlier this year, with payments significantly delayed.
BGMEA plans to escalate the issue to Bangladesh’s mission in Australia, along with relevant ministries, to protect exporters. In response, exporters are urged to monitor their buyers’ credit ratings more closely to avoid future payment issues.
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