A major player in Bangladesh's textile industry, Beximco Textiles has ceased all operations, resulting in the layoff of its entire workforce as of February 28. Triggered by a severe financial crisis, this closure was finalized during a government advisory committee meeting.
Citing lack of work resources, Beximco's management shut down 14 of its facilities, excluding Yarn Unit-1. Beginning in December 2024, these closures continued into February 2025, culminating in the complete shutdown. The company has pledged to pay workers' outstanding dues in phases, starting March 9, with funding from the Ministries of Finance and Labor.
As per the company estimates, it needs 5.5 to 6 billion Bangladeshi Taka to settle wages, a sum it was unable to secure through previous requests for government and bank assistance. Beximco's financial troubles are compounded by the legal issues of its owner, Salman F Rahman, who has been imprisoned since August. Additionally, money laundering allegations have further strained the company's finances.
Initially, the interim government considered selling Beximco Group shares to cover worker payments, but ultimately decided to use government funds instead.
A significant exporter, Beximco Textiles averaged $32 million in monthly exports over the past six years, reaching $59 million in 2022. The factory closures cast doubt on the future of these workers and the company's contribution to Bangladesh's economy.
