Around 2,500 workers have been left unemployed after Lithi Group announced the indefinite closure of five of its garment manufacturing units in Gazipur, citing severe financial difficulties.
The shutdown took effect on Wednesday after the company posted closure notices at the main entrance of its factories in the Bagher Bazar area of Gazipur Sadar . Factory Director Moniruzzaman confirmed the development in the evening.
The affected factories are Apparel-21 Ltd., Famcom Fashion Ltd., Famcom Dyeing Ltd., Famcom Printing Ltd., and Famcom Knitting Ltd.
According to the official notice, the company has been forced to suspend operations due to a combination of factors, including the suspension of gas supply, a sharp decline in purchase orders, uncertainty over future orders, repeated labour unrest in recent years, falling product prices in international markets, and a lack of timely financial support from banks.
The management said these challenges have resulted in substantial financial losses, leaving the company without the capacity to continue operations.
Although the factories have been closed, employees have yet to receive their unpaid wages and other dues.
Moniruzzaman said the company intends to clear all outstanding payments after consultations with relevant government authorities, factory officials, and workers' representatives. He added that if business conditions improve and production resumes in the future, experienced former employees will be given priority in recruitment.
Akash Ahmed, General Secretary of the Bangladesh Garment Workers Trade Union Federation, said the indefinite closure has plunged thousands of workers and their families into uncertainty.
He called for an immediate and long-term solution to the crisis facing Bangladesh's ready-made garment sector, warning that continued factory closures could negatively impact both workers' livelihoods and the national economy.
On June 24, workers of Famcom Fashion Ltd. staged a human chain along the Dhaka–Mymensingh Highway in Bagher Bazar, demanding the reopening of the factory and payment of overdue salaries.
The workers said the factory had been shut down under Section 13(1) of the Bangladesh Labour Act, 2006, effective June 7, due to financial constraints. Although the management had promised to pay May wages by June 23, the payments were not made.
Protesters said the prolonged closure and non-payment of wages have pushed many workers into severe financial hardship, making it increasingly difficult to support their families. They urged the factory owners and the relevant authorities to intervene immediately.
Engineer M M Mamun-or-Rashid, Deputy Inspector General of the Department of Inspection for Factories and Establishments in Gazipur, said a meeting will soon be held at the department's Tongi office to discuss the payment of workers' outstanding wages.
He expressed optimism that the meeting would help resolve the workers' grievances and facilitate the settlement of their unpaid dues.