The rough patch that the Bangladesh garment industry is going through seems to be impacting an increasing number of entrepreneurs with reports of more and more factories going out of business.
Earlier, as per reports that cited President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Dr. Rubana Huq, around 60 factories (members of the association) had to stop operations (from January to October) owing to financial crunch, which resulted in job loss to around 29,594 garment workers.
Now, as per another report, more than 100 factories, including 40 BGMEA members, have reportedly shut their operations in the first 7 months of this year due to higher cost of production and lower prices offered by the foreign buyers and around 60,000 workers lost their jobs.
It may be mentioned here that currently BGMEA has over 3,000 apparel factories registered as its members.
Earlier in May this year, 22 factories were reportedly closed down in just 18 days as the owners could not pay salaries and arrears of the garment workers.