BGMEA blacklists Topland over contractual breaches
The foreign buyer hits back at the trade body with favouritism accusation
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The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has advised its members to refrain from conducting business with Topland International (HK) and its parent company, Celebrity Pink, due to alleged contractual breaches.
In a circular issued on December 5, the apex body of Bangladeshi apparel exporters accused Topland of issuing letters of credit (L/C) or work orders that obligated its members to purchase raw materials from specific suppliers designated by Topland.
This allegedly led to delays in manufacturing and export due to unreliable delivery times from the nominated suppliers.
The circular cited complaints from Yester Jeans Limited -- a Narayanganj-based factory -- claiming that Topland International had failed to comply with a subsequent arbitration decision made in the presence of both parties.
Besides, the trade body said Topland failed to ship goods despite promises to do so, causing financial losses and reputational damage to the BGMEA member.
BGMEA warned its members that they would be liable for any future issues emerging from business dealings with Topland International and Celebrity Pink. Contacted, Md Habib, merchandising in-charge at Topland International (HK) Limited Bangladesh Liaison office, denied any wrongdoing. He said that the buyer had designated only fabric sourcing, while the manufacturers themselves managed accessories.
He blamed the local factory for the shipment delays and commented that no such issues had been encountered with other factories since their business began in 2016.
On top of this, Mr Habib accused BGMEA of favouritism towards its members and said they would protest the move formally by writing to the BGMEA.
However, BGMEA Vice President Shahidullah Azim on Saturday refuted Mr Habib's claims.
He told The Financial Express that the company had yet to fulfil its commitments regarding the shipment of goods despite repeated promises. He also confirmed that Celebrity Pink is the mother buyer for whom Topland placed work orders.