Once a tax record holder, Hitit Seramik has declared bankruptcy.

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While companies struggle to maintain their existence in the face of high inflation, many are waving the bankruptcy flag. Hitit Seramik, once a tax champion and recognized as the 5th largest ceramics company in the world, has also joined the ranks of companies declaring concordat.

3-MONTH TEMPORARY STAY DECISION

Hitit Seramik, which has over 800 employees and is headquartered in Istanbul with a factory in Uşak, has been granted a 3-month temporary stay decision by the Istanbul 1st Commercial Court.

The temporary stay decision will cover İbrahim Hizal Holding, under which the company operates, and board members Sevgi Hizal, Beril, and Eylül Nehir Hizal.

3-MEMBER COMMISSIONER COMMITTEE FORMED

A 3-member concordat commissioner committee has been formed to examine the company's financial statements during the concordat process, and the report prepared by these individuals will clarify whether the company will go bankrupt.

STATEMENT FROM THE COMPANY

Meanwhile, in a written statement from Hitit Seramik, the following was stated: "As Hitit Seramik Sanayi ve Ticaret A.Ş., we have been serving our business partners across Turkey, Europe, Asia, America, and Africa with our 600 employees since 1991. With our 33 years of history, we are a company that produces ceramic and porcelain covering materials, recognized for our brand identity that offers unique designs without compromising on quality criteria, known for principled production and trade, strong in export power, and awarded many times in this regard. Our company has always conducted stakeholder relations with a service and solution-oriented approach, growing its strength within the Turkish and global ceramics industry through correct investments, capable teams, and a widespread trade network.

"A PRECAUTIONARY DECISION HAS BEEN TAKEN BY THE COURT"

However, following the increase in customs duties applied to our products across European Union countries after the pandemic, the changes in balance experienced, recent cash flow difficulties in the economy, the depreciation of the Turkish Lira, and the subsequent rise in interest rates have caused our company to start experiencing difficulties in short-term payments. This situation has begun to affect our trading activities. In order to adapt to market conditions, make sustainable and solution-oriented changes in our current payment structure, take some precautions, and initiate legal processes, we have started a restructuring process by the decision of the Board of Directors. In this context, as of 09.10.2024, a precautionary decision has been taken by the court regarding our concordat request made to the authorized Commercial Court by Attorney Muhammet Yusuf Arı.

Hitit Seramik A.Ş. is a national value that waves the flag of "Turkish Brand." The main goal during the restructuring process is to protect the rights of our customers, suppliers, and business partners. Our company, which will carry out this process with solid and determined steps along with its entire team, will advance our brand more strongly.