The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Poland-based apparel brand LPP SA have issued a joint position regarding the ongoing dispute over invoices and outstanding payment claims surrounding FES Retail.
The joint statement was signed on behalf of BGMEA by its president Mahmud Hasan Khan, and on behalf of LPP SA by Dorota Jankowska-Tomków, director of purchasing and ESG.
BGMEA vice president (finance) Mizanur Rahman and LPP SA country manager Anna Staskiewicz signed as witnesses.
Bangladesh RMG to blacklist Poland’s LPP over $40m arrearsBoth organizations stated that LPP is not legally responsible for the discussed outstanding funds.
Consequently, legal claims for collecting these dues should be directed only to the entities that are legally liable.
In a joint statement issued on Tuesday, BGMEA and LPP expressed their desire to work together to ensure legal certainty, worker protection, and a stable business environment and cooperation in Bangladesh's apparel sector.
The statement noted that the issue currently being publicly discussed primarily revolves around claims of outstanding liabilities involving contracts and invoices.
LPP is not a debtor regarding these liabilities and is not legally obligated to pay them. It has consistently cleared all payments owed to its direct suppliers and business partners in Bangladesh according to their respective contractual terms.
The joint statement mentioned that BGMEA has taken LPP's position into consideration.
The association believes that discussions regarding the settlement of relevant claims and liabilities should take place directly with the entities that bear the legal responsibility.
However, both parties acknowledged that the affected factories are currently facing difficult business circumstances.
In light of this, LPP indicated that it would cooperate in constructive dialogue if needed to resolve the issues by consulting with the legally responsible parties, though this will not alter LPP’s own legal position.
The joint statement also clarified LPP's recent review of certain sourcing activities in Bangladesh.
LPP stated that the main purpose was to ensure worker safety, legal certainty, and a stable, predictable, and fair environment for its business operations in Bangladesh.
LPP also clarified that this review was not an action directed against Bangladeshi manufacturers or factories.
At the same time, its commitment to fulfilling all legal and contractual obligations to its direct contractual partners in Bangladesh remains fully intact.
BGMEA and LPP stated that LPP currently works with more than 350 manufacturers in Bangladesh.
It is essential to ensure that disputes involving a limited number of third parties do not harm these manufacturers, the overall Bangladeshi garment sector, or long-standing business relationships.
For this reason, both parties emphasized refraining from generalized or misleading campaigns.
According to them, such campaigns could unintentionally have a negative impact on other garment manufacturers, workers, and Bangladesh's long-standing business relationship with LPP.
The joint statement added that this outreach will include protecting LPP officers and employees from any improper harassment, pressure, or unfounded legal complications.
However, BGMEA and LPP also reaffirmed their respect for the independence of the legal process and the right to raise valid claims against legally responsible entities.
This means if there are legitimate dues or claims, the concerned party will have the opportunity to raise and resolve them under the law.
Both parties pledged to work together to maintain a safe, stable, and uninterrupted business environment in Bangladesh while ensuring a transparent, fair, and mutually acceptable resolution to the ongoing dispute.
