• Sunday, May 31, 2020

Bangladesh threatens to blacklist non-paying British brands

Discussion in 'Bangladesh Defence Forum' started by Black_cats, May 23, 2020.

  1. Black_cats

    Black_cats SENIOR MEMBER

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    Bangladesh threatens to blacklist non-paying British brands

    RMG
    TBS Report
    22 May, 2020, 11:00 pm
    Last modified: 22 May, 2020, 11:09 pm

    Bangladeshi apparel makers have threatened to blacklist a number of British brands if they do not pay outstanding debts to suppliers.

    The brands are Peacock, Jaeger, Austin Reed, Jacque Vert, Country Casuals, Windsmoor, Baumler of Germany, Bonmarche & Ponden Home, and other brands of Edinburgh Woolen Mills Limited owned by the British billionaire businessman Philip Day.

    On May 21, the Bangladesh Garments Manufacturing and Exporters Association (BGMEA) President Rubana Huq wrote to Philip Day, warning him to settle his bills by May 29 or face a complete embargo on doing business in Bangladesh.

    In this letter, the BGMEA president said this harsh step comes after receiving dozens of complaints from suppliers that Edinburgh Woolen Mills – the parent company of Peacock and several other brands – was avoiding all contacts from suppliers it owes money to for previous orders.

    She also mentioned that this email should be considered as official correspondence and notice from the BGMEA and the Bangladesh Knit Manufacturers Association (BKMEA) to Edinburgh Woolen Mills Limited and its other brands.

    BGMEA sources said Edinburgh Woolen Mills Limited and its subsidiary brands owe about $30 million to about 50 Bangladeshi apparel exporting companies.

    The British company and its brands were doing business with Bangladesh through various agents, importers, full-service vendors and other third parties, approved and working indirectly and/or directly with each of these companies and brands, BGMEA sources added.

    RMG Sustainability Council (RSC) Chairman Nafis Ud Doula said that they cancelled all the orders in the first week of April.

    However, in mid-April, they asked for a 70 percent discount to all suppliers. At the end of April, they again asked for a 30 percent discount. Whenever any suppliers asked for a formal mail, they would never provide it, he added.

    However, unfortunately, from the first week of May, they began looking for new suppliers, sending random emails to the manufacturers, which means they want to dump the existing suppliers, said the RSC chairman.

    "They never respond to any suppliers' communications over email or phone," he added.

    Edinburgh Woolen Mills was waiting for the suppliers to surrender to them with a substantial discount. It was trying to get a huge advantage out of this pandemic situation, said Nafis Ud Doula.

    "Unfortunately, certain buyers are taking undue advantage of the Covid-19 situation and demanding unreasonable discounts despite pre-Covid-19 contracts and despite continued business activity, which is not only impossible to grant, but also in violation of local laws and internationally acceptable standards," reads the letter sent by the BGMEA president.

    Moreover, this defies all the principles of ethical sourcing and governance that international brands and organisations expect from the industry and all its stakeholders, the letter adds.

    It should be noted that the demand for the discounts will not only be financially catastrophic but will also expose our members to various claims and liabilities from regulations, banks and other third parties, which will eventually legally implicate the buyers themselves, the letter added.

    In light of the given circumstances, the BGMEA and BKMEA, upon fully taking into consideration the predicaments of both the exporters, the buyers and the local laws and regulations of Bangladesh have taken certain decisions about your alleged claim for discounts, said Rubana Huq.

    "For goods already shipped and handed over to your nominated freight forwarders before March 25, Edinburgh Woolen Mills, which includes all its affiliates and associates, shall make the payment as per the originally agreed terms of payment i.e. concluded agreements. This payment has to be settled no later than May 29, 2020," said BGMEA official letter.

    For orders already placed, negotiation between the exporter and the buyer should be concluded within June 5, 2020. All negotiations must be mutual and not unilateral by the buyer.

    Deferred shipment, deferred payment and permitted discounts may be allowed provided that the exporters and the buyers have agreed in this regard and such agreement complies with local laws and regulations.

    Any discount beyond permissible limits may lead to adverse and legal consequences on Edinburgh Woolen Mills including all its affiliates and associates.

    Until the above issues are settled and agreed, the Associations will not issue any new UDs to its members for any order of Edinburgh Woolen Mills, which includes all its affiliates and associates. Similarly, BEPZA may also withhold issuance of EP.

    BGMEA requested the British billionaire to comply with the aforementioned requirements and settle all outstanding dues as prescribed above.

    "If the instructions provided hereinabove are not followed, we will have no option but take the decision to place an embargo and black-list the buyers and their agents who do not comply with our instructions, which will prevent them from conducting business with our members in the future either directly and indirectly," said BGMEA president.

    In that letter, the BGMEA president also mentioned that a copy is also being sent to the Bangladesh High Commission in London, the Ministry of Foreign Affairs, BEPZA, Ministry of Commerce, the Bangladesh Bank and the Bangladesh Investment Development Authority, where Edinburgh Woolen Mills/Peacock and/or its affiliates is registered as a liaison office, for necessary information and assistance for compliance of this notice by all buyers.

    The letter is also being sent to the British High Commission and any other concerned ministries or departments.

    https://tbsnews.net/economy/rmg/bangladesh-threatens-blacklist-non-paying-british-brands-84559
     
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  2. DalalErMaNodi

    DalalErMaNodi FULL MEMBER

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    This lady Rubana Huq is very highly educated and articulate when it comes to her speech. We need more women like these in key posts to empower and be a role model for the younger girls.

    Also good move, we shouldn't be slave to these big foreign corporations. Hope the manufacturers get the money the foreign brands owe them.
     
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  3. Bilal9

    Bilal9 ELITE MEMBER

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    I believe we should publicize this company and the owner's behavior (Philip Day) to all Pakistani, Indian and Chinese chambers of commerce and apparel companies. Like I've said before, we suppliers have to act in one voice, for this to be effective.

    Being blacklisted in one country should not mean you can go to another country and start up new business. Blacklisted should mean you have to declare bankruptcy and are shunned from the industry altogether. $30 million is not chump change. You can't get away with a heist this big.

    If necessary they should sue this idiot in the British courts.
     
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  4. Michael Corleone

    Michael Corleone SENIOR MEMBER

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    Imagine if she only led Bangladesh :) a cultured lady


    So these brands want a discount of 15-35 million dollars? Wtf is this? Modern day slavery? Like I said, third world garments association needs to form a union like OPEC for oil, to better negotiate deals and adjust pricing

    If his goes to British court, that muppet will have to pay that with fines and interest
     
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  5. DalalErMaNodi

    DalalErMaNodi FULL MEMBER

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    Sure but I would like if we can for once have a man in charge of Bangladesh, I'll even settle for Mr. Minoxidil or Blabber mouth Obaidul.....

    I can't stand khaleda and now I resent hasina
     
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  6. Michael Corleone

    Michael Corleone SENIOR MEMBER

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    Minoxidil will start hair growth research on his first term, stop thinning of hair in thousands of Bangladeshi youth like me... after all gotta look good for the husband and wives
    Whereas blabber mouth will make fly overs that fly
     
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  7. DalalErMaNodi

    DalalErMaNodi FULL MEMBER

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    Well if BNP win maybe Mirza FUKrul (fuk da rulez?)

    If you go by the charges against him, apparently he likes throwing molotovs and pipebombs at trucks "covered can".... I don't but I like the sound of this mischievous FUKrul
     
  8. Homo Sapiens

    Homo Sapiens SENIOR MEMBER

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    Unfortunately for us, readymade garments is a buyers market. They are the one's who dictate the terms and have most of the maneuverability when it comes to sourcing their products. The number of poor countries willing to tap this market is endless(Africa alone has 50 poor countries). Sooner we lessen our absolute dependency on this export item, better for our future economic prospect.
     
  9. bluesky

    bluesky ELITE MEMBER

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    By reading the news I have a feeling that the Thief Robert Clive of East India Company has been reborn with another name Philip Day. Greedy bast*rd!! He is not paying the arrears for those goods that have been shipped to his companies.
     
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  10. DalalErMaNodi

    DalalErMaNodi FULL MEMBER

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    Khanki'r chele to tai adaat se majboor

    Same people fucked the muslin & textiles industry in Bengal just a few centuries ago
     
    Last edited: May 23, 2020
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  11. Imran Khan

    Imran Khan PDF VETERAN

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    this is really sad . BD can go to WTO for this ??????
     
  12. bluesky

    bluesky ELITE MEMBER

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  13. DalalErMaNodi

    DalalErMaNodi FULL MEMBER

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    Oooh khanki'r chele to philanthropy o kore bal dacait

    Clown can take care of animals by opening up sanctuaries but can't pay living human beings the money he owes them, typical self aggrandising corporate schmuck
     
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  14. Bilal9

    Bilal9 ELITE MEMBER

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    Well you do have a point bhai, but it seems we poorer countries haven't done our homework as organizing the 'sourcing part' as for example, OPEC did.

    I know you can't draw direct parallels, but we should have an 'Apparel Producers Block' for countries which should meet every year and decide (according to specialization, labor cost, technical capability) who is going to produce what and at what quantity.

    If the major apparel countries (Bangladesh, China, Pakistan, India, Vietnam, Indonesia. Thailand among others) organized and formed a 'community' that met every year and decided this and also discussed blacklisting rogue buyers (like we face now), the buyers in these first world countries would have no recourse except to pay a fair price (on time) and not make the rogue mafia-type profits they make now.

    I have to counter your point about poor countries in Africa, good quality apparel does not happen in a whim.

    You need to train your people for years to produce and get acceptable quality export-apparel which satisfies the norm of acceptability in Western countries. Even a button hole - when placed a tenth of a CM apart, is considered a 'reject' item.

    Plus most of Africa (Other than say North Africa, Kenya and Southern region of Africa) has bad infra issues. And those countries which produce apparel in Africa (or even South America) can also be brought under our planned apparel 'Block' membership now, where they gain machinery/technical help, which are all sourced from Asian countries right now.

    These African/South American countries should be convinced about this now. The sooner we do this, the sooner we have a way to hold on our advantage to this or any other production, even non-apparel stuff. As well as demand and get a fair price for our workers. Western folks will not 'grow' sympathy out of the blue and help us out on these matters.

    Producing mass-produced goods in Western countries has more or less ended -except toiletries and FMCG stuff. Their game is basically hi-tech and financial maneuvers to make money, like for example, in the UK/US/EU economies.

    Western Apparel Buyers only gain an advantage because we Asians and Africans are back-stabbing each other. If we did not - then they would have much less of an upper hand.

    For example - the Westerners are beholden to the expertise and money of Asian Buying houses in HK, Taiwan and Korea for almost all apparel and shoe business. Between these buying houses and Westerner wholesalers/marketers, they divide the lion's share of the hundreds of billions of profit made from this industry, while we producers barely get by.

    Why are producer countries (which slowly does not include even China anymore) still beholden to these buying houses even? Why have countries like ours not invested enough in design and marketing capabilities, some of it in Western countries themselves?

    It's the old "Sahib will fix the machine" routine...sad.

    It's been more than a few hundred years since colonialism started (and even ended), when will we learn our lesson??
     
    Last edited: May 24, 2020
  15. DalalErMaNodi

    DalalErMaNodi FULL MEMBER

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    If only the dogs in BAL leading the country, would read Bilal Bhai's posts.....
     
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