# South American textile sector downturn and restructuring > Live situation record from CLSTR: https://clstr.news/situations/south-american-textile-sector-downturn > Updated: 2026-09-09T14:31:00.000Z. Sources: 21. Developments: 7. The South American textile industry continues to face a regional squeeze characterized by shrinking output and job losses, alongside niche efforts toward sustainability. In Uruguay, clothing producers are struggling against imported fast-fashion, with industry representative María Elisa Coitiño noting that many brands have shifted production to China. Argentina’s crisis has intensified. The Federación de Industrias Textiles Argentinas (FITA) reported a record annual loss of 15,468 jobs between April 2025 and April 2026, with production falling 25.6% and factory utilization dropping to 42.2%. Recent data from INDEC indicates production dropped 26.5% between January and May 2026, with capacity utilization reaching only 46.6% in June. FITA further reported that 115 establishments ceased operations in the first four months of the year. In La Plata, the impact on retail and manufacturing is acute. The historic manufacturer Clan Issime closed permanently in late August after 53 years of operation. Founded in 1973, the family-owned business saw its workforce decline from 129 employees to just nine. Owners Jorge and Dolores Bizet cited the economic crisis, fiscal obligations, and competition from low-cost online imports as drivers for the closure. The local retail sector is also suffering; the clothing store All You Need is closing after eight years, with the owner describing the situation as ‘insustainable’, while Alfis Jeans confirmed its closure because sales could no longer cover rents, salaries, and utilities. Most recently, the women’s clothing brand Adriana Costantini announced the permanent closure of its two locations in La Plata and City Bell after 14 years of operation. Other regional developments include the consolidation of Gandhi retail locations and the permanent closure of Will Der S.A. plants. Designer Benito Fernández has characterized the climate as “worse than the pandemic,” reporting that up to 70% of machinery in some instances remains idle. ## Claims - In June, the textile sector's installed capacity utilization was 46.6%. (single source) - 115 textile establishments ceased operations during the first four months of the year. (single source) - The closure of Clan Issime was caused by tax pressure, low consumption, and competition from imports. (single source) - Textile production fell 26.5% between January and May of this year. (single source) ## Timeline ### 2026-09-09: Adriana Costantini closes two stores in La Plata amid textile industry crisis Clothing brand Adriana Costantini is closing its two stores in La Plata and City Bell after 14 years, reflecting a broader crisis in Argentina's textile industry and declining retail consumption. 4 sources. https://clstr.news/cluster/adriana-costantini-closes-two-stores-in-la-plata-amid-textile-industry-crisis ### 2026-09-02: La Plata clothing retailers face closures amid economic crisis Multiple clothing retailers and the historic brand Clan Issime are closing in La Plata, Argentina, due to falling consumption, high costs, and competition from imports. 3 sources. https://clstr.news/cluster/la-plata-clothing-retailers-face-closures-amid-economic-crisis ### 2026-08-29: Argentina textile industry faces production collapse and closures Argentina's textile industry faces a crisis, with production falling 26.5% from January to May and numerous factory closures driven by low consumption and import competition. 3 sources. https://clstr.news/cluster/argentina-textile-industry-faces-production-collapse-and-closures ### 2026-08-26: Clan Issime textile factory to close in La Plata Historic Argentine textile factory Clan Issime will close in La Plata on August 31 after 53 years, citing economic crisis and competition from imported goods. 3 sources. https://clstr.news/cluster/clan-issime-textile-factory-to-close-in-la-plata ### 2026-08-14: Argentine textile and retail sectors face closures amid economic crisis Argentine textile companies face severe crises, with Will Der S.A. closing plants and laying off 120 workers, while clothing brand Gandhi shuts several La Plata locations due to economic instability. 3 sources. https://clstr.news/cluster/argentine-textile-and-retail-sectors-face-closures-amid-economic-crisis ### 2026-07-31: South American textile industry faces Argentine job cuts and Peru's sustainable alpaca fiber breakthrough Argentina's textile industry lost over 15,000 jobs and saw production plunge, while Peru's alpaca fiber sector is testing spirulina‑derived biopigments to boost sustainability and market appeal. 3 sources. https://clstr.news/cluster/south-american-textile-industry-faces-argentine-job-cuts-and-perus-sustainable-alpaca-fiber-breakthr ### 2026-07-24: Uruguay, Argentina and Mexico's textile sectors grapple with imports, job losses and business viability Uruguay's textile industry faces import‑driven job losses, Argentina's cooperative trains workers to sustain production, and Mexico's designers stress the need for profitable business models. 3 sources. https://clstr.news/cluster/uruguay-argentina-and-mexicos-textile-sectors-grapple-with-imports-job-losses-and-business-viability --- Cite as: South American textile sector downturn and restructuring. CLSTR, https://clstr.news/situations/south-american-textile-sector-downturn