Turkish Industrial Giants Caught in Bankruptcy Trap: Textile and Food Sectors in Turmoil

The backbone of the Turkish economy is facing a historic reckoning as rising production costs, tightening credit conditions, and a global slowdown in demand push even the most established industrial conglomerates to the brink. From Forbes-listed billionaires to half-century-old manufacturing pioneers, the “liquidity trap” is claiming victims across the textile and food sectors. Recent closures and court filings highlight a deepening crisis in the nation’s industrial heartlands.

Eren Holding’s Shock Exit: “Textile is Dying”

In a move that sent shockwaves through the Turkish business community, Eren Holding—one of the country’s largest conglomerates employing 14,000 people—announced the total closure of its massive textile complex in Çorlu. The facility served as a global manufacturing hub for premium brands, including Lacoste, Burberry, Gant, and Nautica.

The decision was personally announced by Chairman Ahmet Eren, who expressed deep personal grief over the move.

“It hurts me deeply. We waited 3-4 months to see if we could avoid this, but you are forced to terminate the jobs of your workers. Textile is dying; the industry-wide erosion is simply too great to withstand,” Eren stated.

The closure of the facility, which boasted a daily capacity of 13 tons of yarn and 35 tons of dyeing, has resulted in over 2,000 layoffs. As the 37th wealthiest family in Turkey according to Forbes, the Eren family’s retreat signals that even the most capital-rich entities can no longer absorb the staggering rise in energy and labor costs.

The Concordat Wave: Çözüm Group and Tübaş Textile

The crisis is further evidenced by a surge in “concordat” filings—a legal process similar to Chapter 11 bankruptcy that allows companies to restructure debts under court protection. Çözüm Group Textile, a major player since 2003 with a monthly capacity of 160,000 units, has officially invited creditors to register their claims as its restructuring process intensifies.

Similarly, Tübaş Textile, founded in 1984, along with its subsidiary Sezginler Boya, has sought refuge in the courts. Once an export powerhouse known for digital printing innovations, the group has been granted a three-month temporary grace period. A critical court hearing to determine the company’s fate is scheduled for June 3, 2026.

A 40-Year Legacy Ends: Modern Chocolate Goes Bankrupt

The instability is not confined to garments. In the food sector, Modern Chocolate, a 40-year-old staple of the Karaman region and a former partner of the global giant Ülker, has officially declared bankruptcy. Despite having an annual production capacity of 140,000 tons and previously appearing on the ISO Top 500 Industrial Enterprises list, the company was unable to survive its debt restructuring phase, leaving over 3,000 employees without work.

Expert Analysis: Why the “Giants” are Falling

The number of concordat filings in Turkey has skyrocketed from 1,516 in 2023 to an estimated 6,361 by 2025. Senior banking expert Sabit Eti argues that while Turkish firms have mastered the art of “growth,” they have failed in “risk management.”

• The Growth Illusion: Many firms focused on increasing turnover and capacity without establishing a sustainable cash flow, leaving them vulnerable to interest rate hikes.

• Profit vs. Liquidity: Eti notes that “Companies don’t go bust because of lack of profit; they go bust because of lack of cash.”

• The Stigma of Concordat: While seen by some as a shield, a concordat often triggers a loss of reputation, causing banks to cut credit lines and suppliers to demand upfront payments, often accelerating the final collapse.

As the industrial landscape shifts, these high-profile failures serve as a stark warning: in the current economic climate, size and history are no longer a guarantee of survival.