Bengal Textile Mills could be on the verge of closure as a result of government concerns over continuing losses at the nationalised cotton processor.

According to the country's Financial Express newspaper the mills, which are based in the Noapara district of Bangladesh, have not paid employees and workers for the last four months.

As a result, the paper said, the government has decided not to take responsibility for the mill's losses in accordance with the condition of loans from the World Bank.

The mill reportedly employs 650 permanent staff and 600 day labourers.