BGMEA, LPP clarify over FES retail invoice dispute

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Poland-based apparel brand LPP SA have issued a joint position regarding the ongoing dispute over invoices and outstanding payment claims surrounding FES Retail.

The joint statement was signed on behalf of BGMEA by its president Mahmud Hasan Khan, and on behalf of LPP SA by Dorota Jankowska-Tomków, director of purchasing and ESG.

In the statement on Tuesday, both organizations reaffirmed their mutual desire to ensure legal certainty, protect employees, and maintain stable business operations and expansion in Bangladesh.

The joint statement clarified that the publicly discussed issue relates to contractual and invoice-related claims where LPP is neither a debtor nor a legally obligated party.

LPP confirmed that it regularly settles all outstanding liabilities with its direct suppliers and business partners in Bangladesh in accordance with applicable contract terms.

BGMEA acknowledged LPP’s position that such claims should be directed toward the entities that are legally bound by those liabilities.

While recognizing the commercial difficulties faced by the affected factories, both sides agreed that any negotiations to resolve these liabilities must take place with the legally responsible parties, with LPP assisting in constructive dialogue where necessary without compromising its own legal standing.

LPP further clarified that its recent review of certain sourcing activities in Bangladesh aimed primarily at safeguarding local staff, ensuring legal clarity, and maintaining a stable, predictable, and fair operating environment for its business.

The company stressed that the review was not directed against manufacturers and does not alter its commitment to honoring all direct contractual obligations.