Apex Holdings Ltd has sent a rejoinder to a report headlined "Is Foul Play The New Normal" published in The Daily Star on June 26.
Following is the full text of the rejoinder sent by the Board of Directors of Apex Holdings Limited:
We are writing to express our concerns about the article titled, "Is Foul Play The New Normal?" published in The Daily Star on June 26, 2020, (last modified online at 02:31pm, June 26, 2020).
The article in question wrongly named our company as "Apex Spinning and Textile Mills". We have no such companies under our management. Rather, our sister concern, Apex Spinning and Knitting Mills Limited is an A Category Public Limited Company listed on the Dhaka Stock Exchange. The article continues as follows;
"An official from Apex Spinning and Textile Mills stated that a total of $450,000 worth of orders placed with the company were canceled by H&M.
"They did however pay us for the inventory we had already collected and that cannot be used elsewhere e.g. they paid us for the yarn and the foam cups needed to make bras.
"March 25 was our last working day before the lockdown. There was no work during the entirety of April, so these cancelled orders led to a problem in the cash flow," he added.
"Meanwhile whatever orders were put on hold, are on hold. They will talk about those orders when the pandemic blows over," he said."
We would like to highlight that these quotations reflect an inaccurate picture regarding H&M's business practices. The published news is not a mirror image of our statements and does not echo our sentiment concerning the outlook of our business. Apex Spinning and Knitting Mills Limited did not face any order cancellations from H&M during these challenging times; the number of $450,000 is not factual. We would also like to point out that Apex Spinning and Knitting Mills does not engage in the production of bras for any of our customers.
Furthermore, despite the fact that our factory did maintain responsible closure after March 25th, the direct quotation "There was no work during the entirety of April, so these cancelled orders led to a problem in the cash flow" is misquoted.
The statement "Meanwhile whatever orders were put on hold, are on hold. They will talk about those orders when the pandemic blows over," is also irrelevant, at the time of publishing Apex Spinning and Knitting Mills is running at full capacity with 100% H&M orders.
Lastly, we would like to state that we have a 27 year long-term mutually beneficial business relationship with H&M and they in turn have stood by their commitments to Apex, by taking deliveries as usual, during this unprecedented time.
The name of the company was misprinted, and we express regret for this inadvertent error.
We have on record a quote from a senior official of the company stating, "In total they have cancelled about 200,000 units, I'd say the value would be around … $450,000, but they have covered the liability."
The official also stated, "We had some issues with foam cups, we make bras … so they paid the liabilities of the foam cups. It's like 'It's okay brother, don't worry about it, we will pay for that'."
In the same way, we have a direct quote about the state of the cash flow stating, "The situation is a little tight, because there was no work in April, we were out [of] extra money … we had paid 60 percent of the money, so there is some problem with the cash flow." This quote was simplified for clarity to the statement made above.
We are happy to learn from the rejoinder that H&M is honouring its orders and fulfilling its commitments.
We stand by our report.