Turkey’s Elegant textile manufacturer closes, 1,800 jobless
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A total of 1,800 employees lost their jobs as Turkey's Tekerekoglu Tekstil, the world's third largest home textile manufacturer and producer of the Elegant brand, suspended production due to financial problems stemming from the worsening global crisis.
Tekerekoglu Tekstil, which has some $42 million of debt, sold two of its five factories in order to pay its credit loan, Dogan News Agency (DHA) reported on Thursday. The remaining three factories together with the company's other real estate assets will also be sold, the report said.
A total of 1,800 workers lost their jobs after production was suspended in the company’s five factories, the report said, adding that decision was taken due to the fall off triggered by the recent global financial crisis.
As the crisis sinks its teeth into the real economy worldwide, Turkish producers operating in the textile industry have implemented a number of cost cutting measures including reducing production, laying off employees and downsizing.
Giants of the Turkish textile sector, such as Sonmez Filament, halted production, while Edip Iplik announced it would pull out of the sector as of Dec. 31. Many textile manufacturers have shut down operations across
Tekerekoglu Textile, which was established in 1975 in
The textile sector, which spearheaded Turkey's economy for many years, meets 11 percent of the country’s gross national product and accounts for a forth of all exports.