BGMEA asks members not to do business with Peacocks
The Bangladesh Garment Manufacturers and Exporters Association recently urged its members not to do business with Peacocks, a fashion retailer in the UK, as the Dhaka First Joint District Court issued an injunction restraining Peacocks and its agents to do business with any off-the-peg garments. factory in Bangladesh.
BGMEA and Bangladesh Bank discovered that some RMG postmen were doing business with the British brand despite the court-issued injunction, BGMEA sources said.
Ready-to-wear clothing exporters in Bangladesh had jointly filed a complaint with the Dhaka Joint First District Judge’s Court on March 14, alleging that British retailer Edinburgh Woolen Mill was trying to evade payment of a value of Tk 5.98 crore on the pretext that its Peacocks subsidiary, which imported the products, was bankrupt.
A garment exporter said the Bangladesh Bank had recently identified that some RMG factories were doing business with Peacocks, in violation of the court order.
On September 11, the BB sent a letter to the chairman of the BGMEA informing him of the central bank’s legal mandate notice seeking the trade body’s assistance in implementing the court order.
BB’s letter stated that the subject matter of the dispute was in the area of ready-made garments and that the Bangladesh Garment Manufacturers and Exporters Association was the regulatory authority for the RMG sector.
“In such a situation, Bangladesh Bank may also write a letter to BGMEA, referring to the court injunction order and requesting assistance for coordination in implementing the order,” said the BB.
BGMEA Deputy Chairman Khandoker Rafiqul Islam told New Age on Tuesday that despite the court injunction, some RMG exporters were doing business with Peacocks.
“We sent notices to members and asked them not to do business with the brand,” he said.
Rafiqul said Peacocks should come forward to resolve the crisis with suppliers in Bangladesh, as the brand owed at least 15 exporters more than $2.5 million.