Australian companies are not providing Bangladeshi garments Bangladesh Diplomat

Australian fashion retailer Mosaic Brands is in financial turmoil. Thousands of garment workers in Bangladesh are in danger of losing their jobs due to this instability in the company.

A total of 23 garments in the country will receive millions of dollars from this company. But they are not paying these dues.

'Mosaic Brands' imported the garments from Padma Satel Arab Fashions, a garment company. About 3 thousand people work in this garment. The garment is awaiting payment of $2.5 million due from the Australian company since last June.

Javed Ahmed, Director of Garments, said, “Despite requests for dues, Mosaic has advised us to continue production and said it will pay the dues soon.” He said Mosaic told them they could not pay dues due to their reduced sales.

Garment companies that supply ready-made garments to Mosaic Brands said the company's finances should be investigated. The garments claim that this situation has arisen due to the economic policies of the Mosaic brand. One of them is late payment.

Mosaic Brands appointed independent administration last October to deal with the financial turmoil. Now the company is going through restructuring process. As part of this they may sell their assets.

However, thousands of ready-made garment workers in Bangladesh are in fear of losing their jobs as they are yet to determine what will happen after the company's restructuring.

Source: Apparel Resources