36 RMG exporters threaten to sue Expo Freight over $10m Debenhams dues

A group of 36 Bangladeshi apparel exporters, known as the Debenhams Vendors Community, has threatened to take legal action against Expo Freight Limited (EFL) and its associated shipping carriers for over $10 million in dues owed by the UK-based clothing retail chain, Debenhams PLC, for exported goods.

EFL is the freight forwarder appointed by Debenhams through which the retail chain imported apparel items from these Bangladeshi suppliers. 

When Debenhams filed for bankruptcy in April 2020 during the pandemic, it owed these suppliers around $70 million. Over the past four years, around $60 million of this amount has been settled, according to the Debenhams Vendors Community.

"Legally, EFL is responsible for paying the arrears to the suppliers as it handled the shipment of goods to the now-bankrupt British retailer Debenhams," said Md Zahangir Alam, convener of the Debenhams Vendors Community, at a press conference at the Economic Reporters' Forum (ERF) in Dhaka today (5 October).

He said members of this vendor community have been suffering from financial and banking difficulties since 2020 because of the bankruptcy of Debenhams PLC. 

"We tried to solve this matter and succeeded to some extent. However, due to the negligence of the EFL, we are yet to receive the total export payments," he said.

"On 9 April 2020, Debenhams applied for liquidation and the court appointed an administrator. Then we, the Bangladeshi vendors, formed a community to negotiate and realise our dues," he continued. 

"We contracted with the administrator and lodged our claim. We had several Zoom meetings and managed to sell the goods lying at the UK port and in transit to the administrator," he said. 

"Of the $70 million in dues, we have received nearly $60 million over the last four years, but $10 million still remains unpaid," Zahangir said.

"EFL and its carriers delivered some goods to Debenhams without obtaining our local bank's endorsement on the Bill of Lading, which directly violates the Bangladesh Bank's Foreign Exchange Policy guidelines. As a result, we were never compensated by the consignee," said the

"We sent a legal notice to EFL and its carriers Maersk Line, Hapag Lloyd, BLPL, TPL, SKY WAYS LIMITED and others to realise the due amount," he said.

"Following the issuance of the legal notice, EFL and Maersk Line contacted us and agreed to pay 70% of the Freight on Board [FOB] value for the goods transported by Maersk Line. We received $5.84 million so far while $10.21 million remains due," he said.

Zahangir Alam said EFL is a multinational company which has a local office in Bangladesh. "If it fails to pay the dues, all affected RMG companies will block its office," he added.