A textile company closed due to the “adverse economic and commercial context” and fired 260 employees

The information was confirmed by the newspaper The Coastwhich published a statement sent to workers.

As explained by the firm, with more than 100 years of experience in the country, the decision responds to the “current adverse economic and commercial context, added to structural problems that affect the competitiveness of the national industry.”

Managers pointed to an unviable scenario for the continuity of their operations and without prospects for improvement in the short and medium term.

Among the factors that precipitated the closure, the company mentioned the “indiscriminate” opening of imports of yarn, fabrics and clothing, both new and used; the fall in purchasing power; the high financial, labor and energy costs; and the high tax burden. This set of variables, the company noted, “generated a significant loss of competitiveness for national production.”

The case of Emilio Alal, dedicated mainly to the manufacture of inputs for the footwear, accessories and saddlery industry, in addition to the production of cotton yarn and fabrics, joins that of other companies in the sector that in recent months announced closures or reductions of their plants, with the consequent impact on employment.

The textile industry is going through one of its most critical moments in recent years. According to the latest data from the Federation of Argentine Textile Industries (FITA), the activity of the sector registered a year-on-year drop of 24% in October 2025, well above the average decline of the manufacturing industry, which was 2.9% in the same period.

Official figures also show that the current production level is only comparable to the most complex moments of the pandemic. In October, the utilization of the sector’s installed capacity fell to 32.5%, which represented a drop of 4.6 percentage points compared to September and 15.3 points compared to October 2024.

The impact is also reflected in employment. In September – the latest data available – 105,000 formal workers were registered in the textile industry, about 2,000 less than the previous month and 8,000 less than a year ago. Since December 2023, the sector accumulated a loss of more than 16,000 registered jobs throughout the country.