Mayu Saini

9 min read

Nearly 40,000 workers have been waiting for a way back since Beximco Group's operations ground to a halt—one of almost 350 apparel export factories that have shut down in Bangladesh in the last 18 months.

Beximco has been one of the biggest such factory closures in decades, with the largest number of employee layoffs. It has also been one of the most successful in the industry, and is being closely watched as perhaps an inspiration for other failed and distressed factories.

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Beximco's factories shut down because the group became overwhelmed by massive debt, lost access to normal banking support and working capital, and could no longer finance operations.

Following the collapse of a $20-million investment attempt by the Japan-based Revival Group last year, a newly consolidated private rescue effort is moving swiftly to inject fresh capital and lure back international buyers. A Chinese-backed restructuring plan now offers fresh hope that one of Bangladesh's largest industrial shutdowns may yet be reversed.

Huda Mohammed Faisal, CEO of Revival Group Co Ltd., Japan, told Sourcing Journal that although the transaction was very close to being completed last year, there were a series of issues that stopped it from going through.

There's fresh hope to make it happen.

"We are just connecting the missing dots," he said, pointing out that while Beximco had challenged the auction process for the companies, and the court had granted a stay order on the auction, time was of essence. "Now, the investors are currently completing the due diligence with strong government cooperation."

"Our main concern is the 40,000 workers. The Beximco management intends to revive and reopen Beximco through Revival, and it is important to do this with urgency," Faisal added. "The workers need to be reinstated, and also over time the machinery at the factories will also become junk."

"Now we have arranged 6 billion taka"—around $49 million—"working capital, and are looking at a joint venture with the Chinese company, and will make a tripartite agreement with Revival, Beximco and the Janata Bank," he said.

Faisal explained that under the recent scheme to aid in pre-financing to help closed and partially operational factories return to full production, eligible large industrial and service sector firms can receive up to 2 billion taka ($16.3 million) in working capital loans at 7 percent interest. The fund is aimed at supporting wage payments, utility bills and raw material purchases, while helping revive production, exports and employment.