News / Expo Freight working to settle non-payment issues with Debenhams suppliers

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A forwarder for the UK’s now-defunct Debenhams chain said it was working closely with Bangladeshi suppliers to resolve a non-payment issue.

“Some of the factories are in regular communication with us for assistance,” Mahbub Sarker, head of finance & accounts at Dhaka-based Expo Freight, told The Loadstar.

“We are jointly working to mitigate the issue and assisting the vendors/factories,” he said referring to the latest reports of non-payment of $10.21m owed to Bangladeshi suppliers.

On 5 October, the Debenhams Vendors Community (DVC) claimed Expo Freight had not cooperated in helping to recover payment from Debenhams, which collapsed in 2020, with then $70.5m in bills from Bangladesh suppliers.

DVC also threatened to protest outside the Expo office and take legal action against Expo, unless the money was paid in 15 days.

But DVC convenor Md Zahangir Alam told The Loadstar Expo Freight had assured them the issue could be settled following talks and added: “We are hopeful of an amicable solution.”

Expo Freight contradicted a report in The Loadstar on 9 October, saying it was incorrect that, under its contract with Debenhams, it was responsible for ensuring suppliers received their money.

“Under the regulations of Bangladesh Bank regarding export proceeds repatriation, it is the responsibility of the factories (exporters) to ensure that all sales proceeds are repatriated into Bangladesh through the banking channel directly from the buyer’s bank,” said the company.

“As a freight forwarder, EFL cannot be held responsible for repatriation of sales proceeds, as this is guided by the sales contract, whereby the factories transacted outside the banking channel, violating Bangladesh Central Bank’s regulations.

“It is worth mentioning that our transport documents were issued as per guidelines of Bangladesh Bank.”