Labour Adviser Brig Gen (retd) M Sakhawat Hussain stated in a press conference on Thursday that the government does not consider it feasible to reopen the group’s textile and garment factories, which have been shut down due to overwhelming debt.
Sakhawat Hussain explained that while employees are demanding the reopening of the closed production units, the factories are burdened with such significant liabilities that their operation is no longer viable.
The adviser highlighted that Beximco’s total bank debt includes Tk 299.25 billion taken against 32 factories located in Beximco Industrial Park. Alarmingly, 16 of these factories exist only on paper and were used as collateral for loans.
Janata Bank alone is owed Tk 232.85 billion, contributing to the group’s staggering financial obligations. In December 2024, Beximco laid off thousands of workers across its textile and garment units, citing a decline in orders from international retailers.
Since September last year, the government has provided Tk 2.23 billion in financial assistance to help Beximco meet its obligations to laid-off workers. Currently, only three factories remain operational as the group struggles to navigate its financial woes.
The adviser condemned recent protests by workers, which included vandalism and road blockades, stating that such actions are unacceptable and that measures would be taken against those involved. Employees have urged the government to facilitate the opening of letters of credit to allow for the import of raw materials necessary for factory operations.
Md Abdul Kaium, head of personnel administration at Beximco Garment Division, expressed that the owners are eager to resume operations at the 16 closed factories but acknowledged the daunting challenges posed by the group’s massive debt load.
