British multinational retailer Debenhams, which used to purchase more than 0 million worth of garment items annually from 40 manufacturers in Bangladesh, has now demanded a mindboggling 90 per cent discount from its suppliers in the country.
The company, which appointed an administrator last month, owes $66 million to its vendors in Bangladesh.
“This is absurd,” Zahangir Alam, Coordinator of Debenhams Vendors Community in Bangladesh, told ‘The Daily Star’ newspaper.
Most vendors can at most handle a 15 per cent discount, he said. Of the amount, garment items worth million is lying in UK ports and another million is in factory floors ready to be shipped.
The vendors are uncertain about receiving payment from Debenhams now that it has appointed administrators, said Alam, who is the Managing Director of Design Source.
When a business goes into administration, a licensed insolvency practitioner (IP) is appointed to oversee the procedure. In their role as administrator the IP assumes control of the company from the current directors and manages the business from that point onwards.
Debenhams’ administrators FRP Advisory would work alongside the existing management to get the business into a position to re-open and trade as many stores as possible again when lockdown restrictions are lifted.
Initially, Debenhams sought a 60-day moratorium from Bangladeshi suppliers to pay $70 million up to March, but later it sought another 30 days.
