Argentine textile companies seek bankruptcy protection amid industry crisis

The Argentine textile sector is facing a severe crisis, evidenced by major companies seeking preventive bankruptcy proceedings (concurso preventivo) to manage significant debts.

Zowner, the company behind the Zhoue brand, has formally requested bankruptcy protection through the National Chamber of Appeals in Commercial Matters. Led by President Mauricio Del Monaco, the company reported a total liability of $5,939 million against assets of $1,537 million, resulting in a $4,402 million equity deficit. The debt includes $2,405 million in tax and social security obligations, $2,005 million to commercial creditors, and $1,457 million in bank loans.

In La Rioja, the judiciary has also approved the preventive bankruptcy of Teodoro “Teddy” Karagozian, owner of the TN&Platex group, alongside the company Hilado. The company cited a contraction in the domestic market, reduced consumer spending, and financial asphyxiation as primary drivers for the move.

According to the Argentine Federation of Textile Industries (FITA), the sector is experiencing a sharp decline, with activity falling 13% in July compared to the previous year and a cumulative drop of 22.6% during the first seven months of 2026.