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German retailer defers payment of nine Bangladeshi garment factories


Nine small and medium-sized garment factories are in big trouble as German retailer Colloseum has refused to pay them on the pretext of being hit by the coronavirus pandemic, says a Daily Star report. The company bought T-shirts, polo shirts and sweaters worth $15 lakh from the Bangladeshi suppliers between December last year and February this year through its Hong Kong vendor. Some of these suppliers are: Kappa Fashion Wear, Base Fashion Wear, Dynasty Sweater (BD), Bakhrabad Knitting Industries, Anzir Apparels, IRIS Fashions, Gramtech Knit Dyeing & Garment Industries Ltd, Seo Wan Bangladesh and Disney Sweater.

These suppliers have served Colloseum with a legal notice. However, the retailer is still not ready to pay, and purchases goods from Bangladesh in another name, several suppliers say. Kappa Fashions has been supplying T-shirts and polo shirts to the retailer for the last five years. The company exports $10 million worth of garment items every year and 5 per cent of the consignment goes to the stores of Colloseum.

Another supplier Md Ehterab Hossain sold $5.66 lakh worth of t-shirts and polo shirts, the highest amount among the nine suppliers. A consignment involving $96,000 was brought back from the Chattogram port's store after paying Tk 2 lakh in demurrage in the last moment.

Mohammad Hatem, Vice-President, BGMEA said the association has received complaints against Colloseum from its members. KI Hossain, president of the Bangladesh Garment Buying House Association, added many buying houses are facing the challenge of non-payment. He advised brands and retailers to honor their purchase orders.