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Bangladesh clothing makers say Philip Day owes £27m

The Bangladesh Garments and Manufacturing Association are claiming that Philip Day’s firm and agents are taking ‘undue advantage of the Covid-19 situation’ and are now threatening to halt both production and deliveries to Edinburgh Woollen Mill Group, which is owned by Philip Day amid unpaid bills that have now amounted to £27m.

About thirty suppliers to Day’s retail empire, which includes more than one thousand outlets that include Austin Reed, Peacocks and Jaeger have received a letter from the Bangladesh Garments and Manufacturing Association trade body accusing Edinburgh Woollen Mill and its agents of taking ‘undue advantage of the Covid-19 situation’.

“The demand for the discounts will not only be financially catastrophic, but will also expose our members to various claims and liabilities from regulations, banks and other third parties, which will eventually legally implicate the buyers themselves. We will have no option but take the decision to place an embargo and blacklist the buyers and their agents who do not comply with our instructions, which will prevent them from conducting business with our members in the future either directly or indirectly.” – letter from The Bangladesh Garments & Manufacturing Association Trade Body.

“There are more than tens of thousands of workers in the suppliers to Philip Day’s UK businesses, and these young women and their families are at risk of becoming destitute if their wages are not paid. Philip Day is a billionaire, valued at £1.14bn, who can well afford to pay for what he has ordered”. – Fiona Gooch – Campaign Group Traidcraft Exchange.

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