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Akın Tekstil announces it has only stopped garment production

TopicalAkın Tekstil announces it has only stopped garment production

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Following the news in the media that Akın Tekstil, one of the long-established companies in the industry, had gone bankrupt, the company denied the allegations in its statement to the Public Disclosure Platform (KAP). The statement included the following: “The news in some press and publications regarding our statement we made on the Public Disclosure Platform on 20.12.2024, such as ‘Our company has closed, gone bankrupt’, does not reflect the truth, and only the GARMENT production activities of our Company in our factory located in Lüleburgaz District of Kırklareli Province have been stopped. Our Dyehouse and Weaving activities continue in accordance with our production plans.”

Akın Tekstil terminated the employment contracts of 152 personnel in the garment department

The company’s statement to the Public Disclosure Platform (KAP) on December 20, which was wrongly promoted in the media, included the following statements: “In the decision of our Company’s Board of Directors dated 16.12.2024; Due to the exchange rate policy implemented within the scope of combating inflation in our country and the fact that exchange rates are below the inflation rate and therefore the inability of order amounts purchased in foreign currency to cover the cost, causing the apparel department to incur losses for a long time, the fact that a large part of this loss is due to the high personnel costs of the increases in the minimum wage; the failure to provide the necessary financing resources to cover accumulated losses in the past and the expectation that this loss will continue to increase with the Collective Labour Agreements to start on 01.04.2025, it has been decided to terminate the employment contracts of 152 personnel in the garment expense areas in our factory located in Lüleburgaz District of Kırklareli Province due to the economic conditions explained so far, and to authorize the management to follow up on legal processes and execute transactions.

Akın Tekstil, which is alleged to have gone bankrupt, announced that only its garment production was stopped due to economic reasons, while its activities in other areas continued   Image Source: Akın Tekstil
Akın Tekstil, which is alleged to have gone bankrupt, announced that only its garment production was stopped due to economic reasons, while its activities in other areas continued Image Source: Akın Tekstil

Our Board of Directors Decision dated 16.12.2024, to prevent our Company’s legitimate interests from being harmed and our investors from being misled, it has been decided to postpone the public disclosure of insider information within the scope of Article 6 titled “Postponement of Public Disclosure of Insider Information” of the Capital Markets Board’s Communiqué on Special Circumstances (II-15.1) by taking into consideration the issues of keeping this information confidential and taking the necessary measures regarding the confidentiality of the information. At this point; Since the reasons for the postponement of public disclosure of insider information have been eliminated, this statement has been made.”

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