This resolution was reached during a recent session of the advisory panel tasked with addressing this issue, according to local news publication The Business Standard.
Under the guidance of M Sakhawat Hossain, who serves as Labour Adviser, the meeting took place on 5 January and saw participation of advisors from finance, home affairs, industry, trade, and the attorney general.
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In executing this plan, the government intends to collaborate closely with the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the Bangladesh Export Processing Zones Authority (Bepza), and the Bangladesh Economic Zones Authority (Beza), as documented in the records of the meeting.
The BGMEA had not responded to Just Style’s request for comment at the time of going to press.
Beximco, a conglomerate with significant operations in the textile and garment sector, announced the termination of over 40,000 employees across its 16 textile and garment units last month due to the decline in work orders from international clothing retailers and brands.
With a total workforce of approximately 70,000, the layoffs represent a reduction of more than 57% of the company’s personnel.
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By GlobalDataThe factories impacted by these layoffs include Shinepukur Garments, Urban Fashions, Yellow Apparels, Prefix Fashions, RR Washing, Beximco Fashions, Bextex Garments, New Dacca Industries, International Knitwear & Apparels, Esses Fashions, Escorp Apparels, Crescent Fashion and Design, and Crescent Accessories.
The garment production units in the Gazipur Industrial Park are said to be marked for divestment.
Bangladesh Ministry of Labour and Employment Secretary AHM Shafiquzzaman said the government is exploring avenues to attract foreign buyers for Beximco’s textile and garment operations.
During the meeting, the committee is said to have reached a decision that for the 16 Beximco factories earmarked for divestiture by the authorities, those that have defaulted on loans secured against property will be put up for auction by banks via the Money Loan Court process.
For those facilities not encumbered by bank mortgages, asset disposal will follow regular protocols to address their outstanding debts.
Meanwhile, laid-off workers will receive partial salaries from Janata Bank until March this year, providing some financial relief during this transitional period.
An independent board has been established by the Bangladesh Securities and Exchange Commission (BSEC) to oversee the sale and operational management of Beximco’s factory units. The board has indicated that while the textile and garment divisions face challenges, the pharmaceuticals and ceramics segments remain profitable and will continue to operate.
Recent data from Bangladesh Bank indicates that Beximco owes nearly Tk500bn ($4.06bn) in bank loans as of November 2024, with over half classified as non-performing loans, local news publication The Daily Star reported.
Specifically, Janata Bank holds more than Tk235bn in defaulted loans from Beximco.
Prior to the unfolding of the political developments in the country, Beximco exported approximately $30m worth of textile and garment products monthly.
Beximco Group could not be reached for comment at time of press.
