Beximco Textiles Shuts Down Operations, Workers’ Dues To Be Paid In Phases
Beximco Textiles has announced the closure of all its factories, with operations ceasing completely from 28 February. The company has laid off all officers, employees, and workers, citing a lack of work.
A company notice states that worker dues will be paid in phases starting 9 March, with the finance and labour ministries providing the necessary funds. The labour ministry will be directly responsible for disbursing the payments.
The decision was finalized in a meeting of the Advisory Council Committee on Reviewing the Labour and Business Situation of Industrial Establishments in Beximco Industrial Park, chaired by Labour and Employment Adviser Brig Gen (retd) M Sakhawat Hossain on 26 February.
According to the notice, 14 factories within Beximco Industrial Park, Kashimpur, Gazipur, including Beximco Limited (excluding Yarn Unit-1), have been shut down. Employees were initially laid off in phases on 16 December and 5 February, with a complete closure effective 28 February due to a lack of work and resources.
A copy of the notice has been sent to senior officials of the finance, labour, and industries ministries, as well as other relevant authorities.
Beximco Textiles requires Tk 550-600 crore to settle worker dues as per labour laws. The company had sought Tk 400 crore in financial support to continue operations, but neither the government nor Janata Bank approved the request.
The shutdown comes amid serious financial and legal troubles for Beximco Group. Its owner, Salman F Rahman, has been in jail since 13 August 2024, following the collapse of the Hasina-led Awami League government.
On 29 August, the Bangladesh Financial Intelligence Unit (BFIU) froze the bank accounts of Salman F Rahman, his son Ahmed Shayan Fazlur Rahman, and his daughter-in-law Shazreh Rahman.
On 18 September, the Criminal Investigation Department (CID) of Bangladesh Police filed 17 cases against 28 Beximco officials, including Salman F Rahman, on charges of laundering Tk 1,000 crore abroad under the guise of export trade.
Initially, a government committee planned to sell Beximco Group shares to settle worker dues. However, due to complications in the share sale, the government opted to provide direct financial assistance.
Since the fall of the Hasina government, 16 out of 31 companies under Beximco Industrial Park have shut down, with the group struggling under a debt burden of Tk 28,000 crore. The closure has been attributed to a severe funding crisis and the inability to secure letters of credit for importing raw materials.
Despite its financial struggles, Beximco Group claims that its Textiles and Apparel Division has been the top exporter through Janata Bank for many years, averaging US$ 32 million in monthly exports over the past six years, with 2022 exports peaking at US$ 59 million per month.
