TRZ Garments Industry Limited, a prominent clothing manufacturer based on Gacha Road, Gazipur, announced its closure on Tuesday.
The company, which also operates two sister companies, HN Garments Limited and Nowsin Garments Industries Limited, has confirmed that these ventures will be closing as well, according to BGMEA Senior Vice President Khandkar Rafiqul Islam.
TRZ Managing Director Haroon Ar Rashid confirmed the closure to The Business Post, stating, “The failure of mid-level management and unprofessional behaviour from my commercial banks are the key reasons for this decision.”
“However, I plan to return to the business, as TRZ has been my dream project to which I have dedicated all my efforts, he added.
He mentioned that from June 26, almost all factory activities ceased due to a lack of liquidity needed to continue production. On Tuesday, he finally settled the workers' payments and announced the closure.
Rafiqul Islam commented, “Haroon sold some property to settle the workers' liabilities. He is a capable entrepreneur, and we hope he will return to the business.”
Rashid, a member of the BGMEA board of directors, established the factory in 1999. Initially starting with 400 workers, the company expanded to 5,000 employees and a 3,27,000-square-foot facility in 2009.
Before the Covid-19 pandemic, TRZ exported garments worth $45 million annually.
Since the onset of the pandemic, the factory faced a crisis due to a shortage of orders. Despite efforts to recover, the business was unable to sustain itself.
Haroon explained, “Since early this year, I was facing monthly losses of Tk 3 crore, and I could not bear this huge amount of damage.”
“In June, I received $0.9 million in export revenues, but Mercantile Bank did not pay a single money, and all values were cut as loan payment. I requested at least Tk 3 crore out of approximately Tk 10 crore, but they refused,” he said.
“My other commercial bank, Premier Bank, also did not provide support during this critical time. I am not a loan defaulter, and if they supported me, I might have been able to continue. Now, my main focus is to return to business and seek a partner or financial support,” Rashid added.
He highlighted that TRZ had an annual export capacity of $100 million and emphasised the need for government support to make a comeback.
The company produced a diverse range of garments, including ski wear, winter jackets, swimming trunks, hunting wear, and fishing wear. With about 54 production lines, TRZ had an average monthly production capacity of over 6,50,000 pieces.
It also served global clients in Western Europe, the USA, the UK, Italy, Canada, Australia, Russia, the Middle East, and other parts of Asia.
