International retailers and brands are again demanding payments deferral of 120 to 150 days from Bangladesh suppliers on the pretext sales have dropped after Western nations reimposed lockdowns and tougher restrictions because of a surge in coronavirus infections. As per a Daily Star report, last year too, retailers and brands had sought a deferral in payments for 120 to 220 days, which resulted in severe financial crisis for suppliers, forcing many of them to close their factories and lay off workers.

AK Azad, Managing Director, Ha-Meem Group, is yet to receive its $1.4 million payment from JC Penney as the company was sold out. So far, Azad, Former President, Bangladesh Chamber of Commerce and Industry, has received only $0.7 million from JC Penney before ownership change.

Ahmed F Rahman, Managing Director, Kappa Fashions, said nine small and medium-sized garment exporters had together settled payments with their Hong Kong-based buyer at 43.5 per cent discount after nearly a year of negotiation. As per the final settlement, the Hong Kong-based company was supposed to pay the suppliers $1.5 million by February 19 this year. However, the buyer refused to pay saying was facing problems.

Rubana Huq, President, BGMEA confirms, regular demand for discounts and the deferment of payment are critical issues that the sector has to deal with.