Poland-based global retail group LPP has reaffirmed its long-term commitment to Bangladesh’s ready-made garment (RMG) industry, highlighting its role as a key partner in the sector’s growth.

LPP is one of Bangladesh’s major apparel buyers and currently ranks eighth among the country’s largest sourcing partners. The company sources garments worth more than $750 million annually from Bangladesh and works with over 350 local manufacturers, supporting thousands of jobs and contributing to the development of the country’s apparel industry.

Addressing recent financial challenges, LPP said it was among the parties most severely affected by its previous business relationship with FES. The company currently has outstanding receivables of Tk 36.5 billion, equivalent to around PLN 1.1 billion, from FES, resulting in significant financial losses for the Polish retailer.

Despite the financial pressure arising from third-party liabilities, LPP said it is addressing the situation transparently and remains fully committed to maintaining its business operations in Bangladesh.

The company’s management has made it clear that the financial challenges will not affect its long-standing partnership with Bangladesh. LPP said it will continue sourcing from the country, honour its contractual obligations and maintain stable and transparent business relationships with Bangladeshi garment manufacturers.

“Bangladesh is one of the key pillars of our global supply chain,” LPP said, stressing that despite being one of the parties most affected by the FES issue, ensuring the stability and long-term prosperity of Bangladesh’s garment sector remains a priority.

LPP also said it would continue working with local manufacturers and industry associations to ensure continuity and stability across the supply chain. The company added that its significant presence and investment in Bangladesh would continue to contribute to the local economy while strengthening the global apparel industry ecosystem.