The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) yesterday requested the Australian high commissioner in Bangladesh to take measures regarding approximately $20.30 million in outstanding payments that a Sydney-based company owes to 23 local exporters.

Anwar Hossain, the administrator of the trade body, sent a letter Nardia Simpson, acting high commissioner of Australia in Bangladesh, seeking payments to the affected suppliers.

In the letter, Hossain said 16 BGMEA member factories had been experiencing non-payment issues with Mosaic Brands Ltd in September, reporting that approximately $14.9 million was outstanding at the time.

"We regret to inform you that an additional seven BGMEA member factories are now facing similar issues, with Mosaic Brands Ltd withholding export payments totalling approximately $4.9 million," according to the letter.

"We respectfully seek your kind support in securing the outstanding payments to the affected factories."

Ensuring these payments will not only safeguard the operations of these factories but also protect the livelihoods of the workers who depend on them, the administrator said.

Non-payment is adversely impacting the regular business activities of the factories in their dealings with the line banks.

Mosaic Brands Ltd, formerly Noni B Limited, grew into one of the largest speciality fashion retailers in Australia, with over 1,000 stores nationally, according to its website. The brands under its umbrella include Millers, Rockmans, Noni B, Rivers, Katies, Autograph, W Lane, Crossroads and Beme.

However, the company has run into financial trouble after cycling in and out of profitability in recent years.

On Monday, Mosaic Brands announced that it had entered voluntary administration, putting almost 3,000 jobs at risk.

Voluntary administration is a process where an insolvent company is placed in the hands of an independent person who can assess all the options available and generate the best outcome for a business owner and its creditors.