22.12.2024 09:00
Akın Tekstil, which has been operating in the Lüleburgaz district of Kırklareli for 68 years, has ceased its activities and terminated the employment of 152 workers. In a statement made to the Public Disclosure Platform (KAP), it was emphasized that "the currency increases have remained below inflation."
At the board meeting of Akın Tekstil, held on December 16, 2024, in the Lüleburgaz district of Kırklareli, it was decided to terminate the employment contracts of 152 personnel and to authorize the management to follow up on legal processes and execute the necessary actions.
STATEMENT MADE TO KAP
According to the news on Bloomberg HT, Akın Tekstil stated in its announcement published on the Public Disclosure Platform that the following factors were effective in the cessation of its garment activities and the layoffs.
- The garment division has been incurring losses for a long time due to the exchange rate policies implemented in the fight against inflation, where exchange rates have remained below the inflation rate, making it impossible to cover the costs of orders purchased in foreign currency.
- A significant portion of these losses is due to the increase in the minimum wage, which has led to high personnel costs.
- The inability to secure the necessary financing sources to cover accumulated losses from previous periods.
- It is expected that the losses will continue to increase with the Collective Labor Agreements starting on April 1, 2025.
The company stated that due to these economic conditions, it was decided to terminate the employment contracts of 152 personnel in the garment cost centers at the mentioned factory and to authorize the management to follow up on legal processes and execute the necessary actions.