Exporters in Bangladesh are worried about the recovery of their outstanding payments from the debt-ridden Camaieu.
This comes as a shock, especially at a time when the export sector in Bangladesh is going through hard times because of the economic slowdown in some key export destinations including the EU in the wake of the Russia-Ukraine war.
Camaieu is a French fashion chain. The clothing retailer was declared bankrupt two months after being granted a moratorium. That moratorium has now been converted into a judicial liquidation. All assets are being liquidated to pay off the mountain of debt. Camaieu has had about $300 million in annual business with Bangladesh’s apparel exporters. Camaieu made a relaunch in 2020 and was then taken over by real estate group La Financière immobilière bordelaise but the Covid pandemic weighed heavily on the already weak retailer. The closure of Camaieu may affect Bangladesh’s overall export growth at least to some extent. Camaieu was a major buyer in the French clothing market.
A number of buyers including fashion retailers JCPenney and Sears, based in the United States, and fast-fashion retail chain Peacocks and department store chain Debenhams, based in the United Kingdom, have gone bankrupt in recent years.