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Argentine textile industry financial crisis

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2026-10-26 17:14 UTC → 2026-10-26 21:31 UTC · added ~~removed~~

The Argentine textile sector is experiencing a severe financial crisis, characterized by significant debt and declining industrial activity. According to the Argentine Federation of Textile Industries (FITA), sector activity fell 13% in July compared to the previous year, with a cumulative drop of 22.6% during the first seven months of 2026. Individual companies have begun seeking legal protections to manage massive liabilities. In Reconquista, a court declared Algodonera Avellaneda SA bankrupt after failed negotiations with creditors. The company, which acted as a guarantor for massive loans taken by Grupo Vicentin from Banco Nación, faces debts exceeding US$260 million and over $6 billion in pesos. While the bankruptcy has resulted in the immediate loss of jobs for 100 workers, the court is investigating if the company can continue operating temporarily under trustees to preserve remaining employment and facilitate an orderly sale. Following the bankruptcy declaration, Judge Fabián Lorenzini has opened a registration process for potential buyers of Algodonera Avellaneda’s assets and industrial establishments, including fiber, yarn, and fabric production units. The registration period is set to run until November 11, 2026. The judge noted the “extremely grave situation” regarding the economic and social vulnerability of workers' families and emphasized the need to preserve asset value to attract investors while addressing salaries and indemnities. Other major players are also seeking preventive bankruptcy proceedings. Zowner, the company behind the Zhoue brand, reported an equity deficit of $4,402 million, citing substantial tax, social security, and bank debts. Additionally, in La Rioja, the judiciary approved the preventive bankruptcy of the TN&Platex group and Hilado. These companies have attributed their financial instability to a contraction in the domestic market, reduced consumer spending, and “financial asphyxiation.” ~~Labor instability is also rising elsewhere; in Tierra del Fuego, the firm Australtex implemented a reduction in the ‘zona fría’ allowance, affecting approximately 130 employees.~~

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