The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and LPP S.A. have issued a joint statement regarding an ongoing dispute involving claims by two business entities over invoices related to FES Retail.
The two organisations expressed their mutual commitment to ensuring legal certainty, protection of employees, and stable business growth and cooperation in Bangladesh, BSS reports citing a BGMEA press release.
According to the statement, the matter currently being discussed publicly relates to claims of outstanding liabilities arising from certain contractual and invoice-related issues. LPP said it is neither a debtor nor a party legally obliged to make payments in connection with those claims.
LPP confirmed that it regularly settles all its liabilities to its direct suppliers and business partners in Bangladesh in accordance with applicable contractual terms.
BGMEA has taken note of LPP’s position that the claims should be addressed to the entities that are legally responsible for the liabilities.
Both sides acknowledged that the affected factories are facing difficult commercial circumstances and agreed that any discussions concerning settlement of the liabilities should take place with the parties legally responsible for them.
LPP, while maintaining its own legal position, will assist in constructive dialogue where appropriate, the statement said.
LPP also confirmed that the recent review of some of its sourcing activities in Bangladesh was primarily aimed at protecting its local employees and ensuring legal certainty as well as a stable, predictable and fair environment for its business operations.
The review was not directed against manufacturers and does not affect LPP’s commitment to fulfilling all of its direct contractual obligations, it said.
BGMEA and LPP agreed that the interests of Bangladesh’s entire apparel sector, including more than 350 manufacturers currently doing business with LPP, should not be adversely affected by a dispute involving a limited number of third parties.
The two organisations therefore stressed the importance of avoiding sweeping or misleading publicity that could unintentionally harm other manufacturers, workers, or the longstanding business relationship between LPP and Bangladesh.
To ensure a fair and orderly process, BGMEA will engage with the relevant ministries, authorities and industry stakeholders, according to the statement.
This will include efforts to ensure protection of LPP’s officers and employees from any inappropriate harassment, pressure or unfounded legal complications.
The statement was issued without prejudice to the independence of lawful legal processes and without restricting the right of any party to raise legitimate claims against entities legally responsible for the liabilities.
BGMEA and LPP also reaffirmed their longstanding partnership and shared commitment to the growth and sustainable development of Bangladesh’s apparel sector.
Both organisations pledged to work together to ensure a fair, transparent and mutually acceptable resolution of the ongoing matter while maintaining safe, stable and uninterrupted business operations in Bangladesh.
The joint statement was signed by BGMEA President Mahmud Hasan Khan and LPP S.A. Director-Purchasing and ESG Dorota Jankowska-Tomkow.
BGMEA Vice-President (Finance) Mijanur Rahman and LPP S.A. Country Manager Anna Staskiewicz witnessed the signing ceremony.
