151 Textile & Garment Factories In Bangladesh Shut Since August 2024
Bangladesh’s textile and garment industry is facing mounting challenges, with 151 textile and apparel factories permanently closing between August 2024 and June 2026 amid weak global demand and rising operating costs.
Industry data shows that of the 457 factories that ceased operations during the period, 108 were members of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), 35 belonged to the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), eight were affiliated with the Bangladesh Textile Mills Association (BTMA), and 19 operated under the Bangladesh Export Processing Zones Authority (BEPZA).
Manufacturers attributed the closures to declining export orders, higher raw material and production costs, energy shortages, inflation, limited access to bank financing and continued uncertainty in global markets.
To support the sector, the government has introduced relief measures for distressed manufacturers. According to BGMEA, 322 factories—including 199 fully closed and 123 partially closed units—have applied for assistance, with their eligibility currently under review.
Gazipur recorded the highest number of factory closures at 155, followed by Ashulia with 124 and Chattogram with 119.
“The crisis had evolved from an initial shortage of orders into a broader working capital problem, with many factories unable to open letters of credit for importing raw materials,” said Anwar-ul-Alam Chowdhury Parvez, President of the Bangladesh Chamber of Industries.
Industry experts have also called for independent audits to ensure government support is directed only to factories with viable recovery prospects.
