Bangladesh bank auctions six Beximco factories

Despite efforts from the country’s labour ministry to revive Beximco’s internationally certified textile factories to preserve thousands of jobs and maintain export earnings, state-owned Janata Bank issued notices about the auction following a board meeting.

According to The Business Standard, the bank issued public notices to auction 193 decimals of land and all structures on it at Beximco Industrial Park, which had been mortgaged as collateral for loans on three of the factories.

Beximco reportedly has outstanding loans totalling approximately $2.9bn.

Notices for the other three factories are expected to be published soon, according to bank sources.

Beximco did not return a request for comment when approached by Just Style.

Earlier this year (February), the Government of Bangladesh reportedly resolved to find alternative employment for 40,000 workers affected by Beximco Group factory closures.

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 at the end of 2024 due to the decline in work orders from international clothing retailers and brands.

With a total workforce of approximately 70,000, the layoffs represented a reduction of more than 57% of the company’s personnel.

The factories impacted by these layoffs included 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.

At the time an independent board was established by the Bangladesh Securities and Exchange Commission (BSEC) to oversee the sale and operational management of Beximco’s factory units.

"Bangladesh bank auctions six Beximco factories" was originally created and published by Just Style, a GlobalData owned brand.

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