BGMEA and LPP issue the following joint statement regarding the ongoing dispute involving claims made by two business entities in connection with invoice to FES Retail. BGMEA and LPP shared intention to ensure legal certainty, employee safety and stable business promotion and cooperation in Bangladesh, a press release said.

The matter currently discussed publicly concerns alleged unpaid liabilities arising from contracts and invoices to which LPP is not a debtor and is not the party legally obliged to make payment. LPP confirms that it settles its own obligations towards its direct suppliers and business partners in Bangladesh on an ongoing basis and in accordance with the applicable contractual terms.

BGMEA takes note of LPPs position that the claims should be addressed to the entities that incurred the relevant obligations. Both parties recognize that the affected factories in a difficult commercial situation and agree that any discussion regarding settlement of those liabilities should be conducted with the party legally responsible for them, with LPP supporting a constructive dialogue where appropriate and without prejudice to its legal position.

LPP further confirms that the recent review of certain sourcing activities in Bangladesh was prompted by the need to protect its local employees, ensure legal certainty and maintain a stable, predictable and fair environment for business operations. This review was not directed against manufacturers and does not affect LPP’s commitment to honor all of its own direct contractual obligations.

BGMEA and LPP agree that the interests of the broader Bangladeshi apparel sector, including the more than 350 manufacturers currently engaged in business with LPP, should not be adversely affected by a dispute involving a limited number of third-party relationships. Both parties therefore consider it important to avoid broad public narratives that could harm uninvolved manufacturers, employees or the long-standing commercial relationship between LPP and Bangladesh.

BGMEA will engage with relevant ministries, authorities and industry stakeholders to support a fair and orderly process, including protection of LPP officials and employees from undue harassment, pressure or unfounded proceedings. This statement is made without prejudice to the  independence of lawful proceedings and without limiting the right of any party to pursue legitimate claims against the entity legally responsible for the relevant obligations.

BGMEA and LPP reaffirm their longstanding partnership and shared commitment to the growth of business and sustainability of Bangladesh’s apparel sector. Both organizations pledge to work.