Hilado SA, a prominent textile firm in Argentina, has filed for preventive bankruptcy amidst a challenging economic climate affecting the local industry.
Hilado SA, part of the TN & Platex group, has formally submitted a request for preventive bankruptcy to reorganize its debts and ensure the survival of its plants in light of a dire economic situation in Argentina. The decision reflects a broader trend of recession within the textile industry, with the company citing a drastic reduction in local consumption and an influx of imported goods as key pressures. In 2025, the combination of these factors has led the company to seek legal protection to restructure financially.
The crisis facing Hilado SA is emblematic of a larger issue affecting the Argentine textile sector. The firm's diminished profitability stems from a combination of rising imports, which amounted to USD 1.506 billion last year, and the deregulation of foreign digital sales. Additionally, the growth of the second-hand clothing market has intensified competition, further squeezing local manufacturers. These challenges have culminated in unsustainable financial conditions exacerbated by financial costs soaring well above inflation, effectively crippling operational financing.
Hilado SA’s bankruptcy request highlights the urgent need for changes within the Argentine textile industry, as it struggles against both global market pressures and domestic consumption issues. The company's actions may set a precedent for other firms facing similar challenges, illustrating the critical nature of the industry’s current financial health and the potential impact on employment and economic activity in the sector. The unfolding situation underscores the broader implications of trade policies and economic strategies that could determine the future viability of the local textile market.
