TYH Tekstil closes 7 factories and lays off 5,000 employees

TYH Tekstil, a major player in Turkey's textile and ready-to-wear sectors, has closed seven of its 13 factories and reduced its workforce from 6,900 to 1,900 employees. Chairman Selçuk Mehmet Kaya stated that the company is currently undergoing a concordat process due to economic difficulties.

The company's downsizing follows a broader trend of contraction within the Turkish textile industry. Rising costs against a stable exchange rate, shrinking exports, and a slowing domestic market have weakened the sector's competitiveness. Recent industry data from the Turkish Clothing Manufacturers Association (TGSD) indicates that since December 2022, the sector has lost 362,879 registered jobs and 10,624 workplaces.

Other significant closures include the Kayseri-based company Orta Anadolu, which produced denim for international brands such as Levi’s, Guess, and Diesel, and recently closed a factory employing 1,500 people.