Source: Multiple media outlets

Image: Screenshot of the report

Legally speaking, layoffs are currently the only solution for this company.

Recently, Beximco, the largest textile and clothing manufacturer in Bangladesh, announced the layoff of tens of thousands of employees.

The company has been in a state of continuous collapse and uncertain future prospects since its co-founder and vice chairman were arrested on suspicion of crime in August.

Source: Multiple media outlets

Image: Screenshot of the report

The vice chairman was first arrested on suspicion of being involved in the death of a shop owner, and then charged with financial issues such as money laundering and embezzlement of public funds.

Cut off 40000 garment workers

According to the advisory committee established by the government:

Starting from December 16th, 16 clothing factories under BEXIMCO, including BEXIMCO Fashion Company, Crescent Fashion and Design, will lay off approximately 40000 workers.

These workers will receive half of their basic salary and 45 days of allowances in accordance with Bangladesh's Labor Law.

The investment areas of the Beshinko Group cover multiple industries such as pharmaceuticals, real estate, and energy. Over the past four months, the group has been unable to operate normally due to liquidity crisis, declining demand, and labor unrest.

At the same time, the central bank's takeover of its outstanding loans has added to the woes.

Last month, workers at the Beshimko factory blocked the road due to unpaid wages, and only dispersed after the government intervened and paid their wages.

Temporary council member Ali pointed out that although the government has provided salary support, continuous funding is not realistic.

He also revealed that the government is studying converting some factories into independent operations, but they must be separated from the control of their original owners.

Not receiving government promised support

Founder controversy and group fate

Group representative Choudhury stated that despite the government's promise of support, it has not been fulfilled in reality.

He mentioned that the group's clients include Marks&Spencer, Zara's parent company Inditex, etc. Since August, they have spent 3 billion taka (approximately 25.1 million US dollars), most of which has been used to pay employee salaries, but the income is far from enough to cover the expenses.

Salman F. Rahman, one of the founders of Beshimko, was once a confidant of Prime Minister Sheikh Hasina and is now mocked as the "father of default culture" for owing up to $42 billion in bank loans.

At present, the textile and clothing department of Beshimko has been marked as "temporarily closed", and there is still uncertainty about whether it can be revitalized in the future.

Source: Multiple media outlets

Image: Screenshot of the report