State-owned Janata Bank has moved to auction six factories belonging to the troubled Beximco Group, even as the government pursues a foreign-backed leasing plan aimed at reviving the country’s largest textile and apparel conglomerate.
Auction notices for three units — International Knitwear & Apparel Ltd (Unit-1 and Unit-2), Urban Fashions Limited, and Apollo Apparels Limited — were published on 21st November, a day after the bank’s board met on 20th November. Bank officials indicated that notices for three additional factories — Crescent Fashions and Design Limited, Assess Fashion, and Bangladesh Export Import Company Limited — would be issued shortly.
The auction includes 193 decimals of land within Beximco Industrial Park in Kashimpur, Gazipur, as well as factory buildings, machinery and other mortgaged assets.
A senior official from the Ministry of Labour and Employment said that, during inter-ministerial discussions, Janata Bank’s managing director had opposed leasing the factories and had instead supported auction proceedings, a position reportedly backed by several government representatives.
According to the auction notices, International Knitwear & Apparel Ltd (Unit-1 and Unit-2) received loans totalling Taka 543.7 crore from Janata Bank, which have now escalated to Taka 1,754.7 crore due to accumulated interest. Urban Fashions Limited’s borrowings have risen from Taka 252.45 crore to Taka 724.26 crore, while Apollo Apparels Limited’s loans have grown from Taka 251.26 crore to Taka 816.4 crore.
Other Beximco entities owe significant sums as well: Crescent Fashions and Design Limited owes Taka 1,397 crore; Assess Fashion, Taka 1,135 crore; and Bangladesh Export Import Company Limited, Taka 1,316 crore.
The government, led by the Ministry of Labour and Employment, has been attempting to restart Beximco’s textile and apparel units to safeguard thousands of jobs and maintain export flows. In May, Japan-based Revival Project Limited submitted an expression of interest to lease the factories, with US-based Ecomillie expected to finance the venture.
Under the proposal, Revival would invest an initial US $ 20 million, with long-term commitments potentially reaching US $ 100 million. The company would operate the factories and receive a commission from export earnings, with remaining proceeds allocated to repaying lenders. An 11-member advisory panel chaired by Labour and Employment Adviser Brigadier General (retd) M. Sakhawat Hossain supported the revival plan.
However, Janata Bank’s decision to proceed with asset auctions has cast doubt over the future of the proposed revival initiative.
