As the rancour between the garment suppliers and global buyers continues to grow amidst reports of buyers continuing to allegedly cancel orders and holding back payments, now it has emerged that the parent company of Sears Holding, Transformco, has been asked to settle outstanding debts of around US $ 40 million owed to its suppliers in Bangladesh, failing which it has been threatened with legal action.
According to media reports that cited information which appeared in an Apparel Insider article, lawyers representing owners of 19 readymade garment manufacturing units have said that apparel items worth more than US $ 21 million, produced by these factories, have already been shipped and lying with Transformco’s carriers in ports in USA.
The shipments have allegedly not been taken by Transformco since.
The suppliers have reportedly given Transformco time till 8 June to resolve the issue, failing which the suppliers could seek involuntary bankruptcy of the entity on the ground of non-payment of debts, claimed the lawyers.
It may be mentioned here that following large-scale order cancellations, which according to some accounts amounts to a staggering US $ 3.15 billion, the garment manufacturers in Bangladesh have been put in a precarious position.
This has led the apex garment makers’ body in the country, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), to call upon buyers to respect contracts signed with their suppliers and have even threatened to blacklist the errant buyers.
