The Pakistan Institute of Labour Education & Research (PILER) says it intends to file a lawsuit in the European courts against a German firm, in relation to the death of over 250 people in a fire at the Ali Enterprises garment factory in Baldia, Karachi, on 11 September 2012.

Karamat Ali, executive director of PILER told just-style that KiK did not stick to a memorandum of understanding signed on 21 December 2012, in which KiK "agreed to provide immediate relief of US$1m to the victims of Ali Enterprises".

The agreement, says Ali, included further long-term compensation to victims and contributions towards creating health and safety awareness and implementing national laws and international conventions in Pakistan.

In a meeting in Berlin last month, KiK appeared unwilling to provide any further compensation, claiming that "the amount of US$1m comprised both immediate and long-term compensation", said Ali.

"We are still hopeful that the management of KiK will adopt a reasonable and honest view of the agreement and abide by it in letter and spirit and conclude the negotiations at the earliest, preferably with the second anniversary of the incident that falls on 11 September 2014. If they don't we will be left with no option but to file legal proceedings for breach of agreement," Ali told just-style.

German retailer KiK was the only known buyer of garments from the Ali Enterprises garment factory.