Edinburgh Woollen Mill mulls legal action against BGMEA

Edinburgh Woollen Mill Group (EWM) has said it is mulling legal action
against the Bangladesh Garment Manufacturers and Exporters Association
(BGMEA) over “baseless claims” which risk “putting the company at
jeopardy”.

The company, which owns brands Bonmarché, Peacocks and Jaeger, said
claims in the media that it still owes 26.7 million pounds to Bangladesh
suppliers are incorrect and refer to “an old figure that is completely baseless and
without any merit”.

EWM Group chairman John Herring wrote to the president of BGMEA urging
the organisation to “correct falsehoods” about outstanding debts to BGMEA
members. He said the lack of clarification around the claims now risks
jeopardising “critical” relationships with credit insurers.

It comes as EWM pursues discussions over the solvent sale of its
Jaeger brand and pursues a valuation of Peacocks.

EWM said it is now considering legal action against BGMEA. The board is
meeting tomorrow to discuss the issue.

“To the best of our knowledge, all outstanding amounts that were owed to
suppliers in Bangladesh have been settled or agreed,” an EWM spokesperson
said. “Old figures that have been recirculated are completely baseless and
without any merit. They are categorically false, and risk putting our
business in serious jeopardy.”

Photo credit: Bonmarché, Facebook