Dhaka, Saturday, 12 June 2021

Bangladeshi garments suppliers win lawsuit against US buyers

Bangladeshi garments suppliers win lawsuit against US buyers

Apparel Correspondent: A group of Bangladeshi garments suppliers have won a US $40 million lawsuit against US clothing giant Sears, according to a report published by Forbes, a US economic magazine, on Saturday, January 30.

Bangladeshi garments suppliers were severely hit by the COVID-19 pandemic and unethical business practices of Western giant buyers.

As a result, they sued Sears, a US-based company. They have won a rare victory in the lawsuit of compensation of more than 40 million US dollars.

Joseph E Sarachek, the attorney who represented 21 Bangladeshi factories in the lawsuit filed against Sears last June

Following the victory in the case, Sarachek said that the retail US buyers have put these Bangladeshi garment suppliers in a depressing situation. Sears have been hesitant to pay their dues since last summer and pushed suppliers to a breaking point after the company went through bankruptcy.

After winning the lawsuit, Sarachek confirmed that his clients would get their money back through in a settlement with Transformco.

Transformco is a private company which was set up by ESL Investments of US billionaire Edward Lampert. Last year, they invested money to save Sears and Kmart out of bankruptcy.