LPP, one of the major global players in the European retail sector, has reaffirmed its commitment to Bangladesh, highlighting its role as a key growth partner for the country’s ready-made garment (RMG) industry.
As one of the largest buyers of apparel from Bangladesh, LPP plays a significant role in the local economy. It is currently the eighth-largest buyer of garments from Bangladesh, sourcing more than $750 million worth of products annually from a network of over 350 Bangladeshi manufacturing partners. Its operations generate thousands of jobs and directly support the country’s industrial development, reads a press release.
Addressing recent financial complexities in the market, LPP said it remains the party most significantly affected by its historical relationship with FES. FES currently owes LPP BDT 36.5 billion (approximately PLN 1.1 billion), resulting in substantial write-offs for the Polish retail group. Despite facing severe financial strain from these third-party obligations, LPP has absorbed the impact while navigating the situation transparently.
LPP management stressed that these external financial challenges will not affect its long-standing partnership with Bangladesh. The company remains fully committed to maintaining its sourcing operations, honouring all direct contractual obligations and fostering stable, transparent relationships with Bangladeshi garment manufacturers.
“Bangladesh remains a cornerstone of our global supply chain,” noted LPP leadership. “Despite being the party most severely impacted by the FES matter, our priority is ensuring the stability and long-term prosperity of Bangladesh’s garment sector and the local workforce that powers it.”
Moving forward, LPP will continue collaborating with local manufacturers and industry bodies to ensure supply chain predictability, ensuring that its extensive investment in Bangladesh continues to support the local economy and strengthen the global apparel ecosystem.
