Turkey’s Global Textile Brand Karaca Files for Bankruptcy Protection
With over a century of existence in the Turkish industry, one of the oldest textile and fashion brand Karaca declared an arrangement of bankruptcy.
The brand, for its double deer logo, employs 750 workers, runs nearly 200 sales points, and receives around 10 million customers annually.
“Liquidity squeeze, exchange rate increase, and high-interest rate caused us to ask for financial protection,” Turkey’s top textile exporter Karaca said in a statement.
Famous Karaca brand with its hundred people local investment structure, explained the reason for pre-arranged bankruptcy that the company plans to escape this economic crisis with minimum loss.
“In order to protect our commercial activities and establish a sustainable payment structure, as of 26 December, in accordance with our file of financial protection application to the Commercial Court of First Instance, the court has made an injunction decision,” the company said.
Karaca’s executives explained that “concordat decision will help the company overcome the difficulties in our short-term payments, due to the recent liquidity squeeze in the markets, high-interest rates and the difficulties of borrowing from banks, as well as the negative effects of foreign exchange losses as Turkish Lira weakened against US Dollar over 40 percent.”
Karaca’s management explained that textile sale figures recorded below expectations, and the company’s strategy is to protect stakeholders, employees, suppliers and business partners in this volatile economic environment, through concordat declaration.
“Double Deer Karaca Clothing Industry Trade. Inc. is Turkey’s one of the most important clothing retail company. We are confident that we will continue to serve our country and nation by preserving the rights of all our stakeholders in this temporary process and in the aftermath, and to continue to provide Karaca’s 102 years of quality to our customers,” the company stated.
“Karaca’s history is filled with its contribution to Turkey’s textile industry as well as to the global fashion world, Double Deer Karaca was established in 1917 in Bandırma (Northwestern City, located between Istanbul and Izmir).
Karaca became the first Turkish textile brand to be registered in 1961 and exported textile to 36 countries in five continents in late 1960s. Karaca is part of Narin Group, which is a major knitwear manufacturer with one hundred percent national capital. Karaca is now a major retail organisation and stands as Turkey’s exclusive brand,” Top textile brand shared the information following concordat declaration.