LPP cancels decision to wrap up business in Bangladesh

Just twelve days after announcing the suspension of its business operations in Bangladesh, Polish apparel brand LPP has withdrawn that decision. As a result, the company will continue its business with Bangladesh as before. At the same time, LPP has also assured assistance in recovering the dues of Bangladeshi exporters that have been stuck with a Russian company.

Mahmud Hasan Khan Babu, President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), shared this information on Monday (August 10). He stated that following a meeting with BGMEA leaders, a joint statement has been prepared with LPP. The decision to step back from the suspension of business in Bangladesh will be announced there.

Mahmud Hasan Khan Babu said, "They will continue their business. However, LPP will cooperate so that Bangladeshi exporters receive the payments for the goods they sent to that Russian company." He also mentioned that a joint statement has been formulated between both parties regarding this matter.

For a long time, export earnings of nearly $40 million belonging to about 40 Bangladeshi exporting companies have been stuck with a Russian entity named FES Retail. Exporters alleged that the product export contracts with that company were facilitated through LPP's Dhaka office.

Recently, several Bangladeshi exporters approached the court to recover their due funds. Following this, law enforcement agencies reportedly raided the residences of a few officials from LPP's Dhaka office. Amid these developments, LPP announced the suspension of its business operations in Bangladesh on July 30.

However, following meetings with BGMEA, the company is set to announce its withdrawal from that decision. Simultaneously, the decision to cooperate in recovering the dues of exporters has paved the way for keeping LPP's operations normal in Bangladesh.

LPP is an important buyer for Bangladesh's ready-made garment sector. Approximately 772 local companies supply garments and various other products to the company, with the annual value of these supplies exceeding $700 million.