Around 100 suppliers of one of the fastest-growing clothing retailers in Central and Eastern Europe, LPP, are in trouble in Bangladesh over deferred payments, amounting to around US $ 180 million, including finished goods and value of halted orders.
Media reports maintained this citing concerned garment exporters even if industry insiders have reportedly maintained LPP’s suppliers in the county were under duress on account of deferred shipments of products and payments since the outbreak of the Ukraine war while also adding that affected exporters were finding it difficult to run their business as the concerned buyer is not taking finished goods as per LC agreements.
Further, on condition of anonymity, three exporters have reportedly said their back-to-back LCs have already been converted to forced loans and that they have now requested the BGMEA to take initiatives to settle this issue even if sources claimed exporters and their raw materials suppliers were facing a liquidity crisis due to non-payment of their back-to-back LC loans.
