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