Beximco Group is currently facing a severe financial crisis, which has led to the closure of its Shinepukur Ceramics factory, marking the total shutdown of 24 of its ventures. The main reason behind this shutdown is the inability to open letters of credit (LCs) for raw material imports, which began after the political change in August. As a result, 23 textile and ready-made garment (RMG) factories at the Beximco Industrial Park in Gazipur have been non-operational for the past four months, leading to a liquidity crunch and unpaid wages. Approximately 40,000 workers, with a total salary bill of around Tk 80 crore, have not received their October salaries, and management has urged the workers to wait until November 20 for payment.
However, Md Ruhul Amin, the central bank-appointed custodian of the group, stated that Beximco has no banking issues and is not insolvent, although senior officials from Janata Bank have disclosed that a significant portion of the group’s loans has turned non-performing. The group’s financial distress has raised concerns among foreign buyers, as the appointment of a custodian is usually seen as a signal of financial insolvency, which could damage buyer confidence.
