TYH Tekstil Closes Seven Factories, Cuts 5,000 Jobs in Turkey

TYH Tekstil, a 26-year-old Turkish garment manufacturer producing for Lacoste, Ralph Lauren and Tommy Hilfiger, has closed seven of its thirteen factories and dismissed 5,000 employees as economic pressures forced the company into Turkey's concordato restructuring process.

The workforce fell from 6,900 to 1,900 — a reduction of roughly 72 percent in a single contraction. Company chairman Selçuk Mehmet Kaya confirmed the figures in a statement to Vahap Munyar of Ekonomim, saying the company is now in concordato and that economic hardship had brought it to this point.

"We were producing with 6,900 people across 13 factories. We came down to 1,900 people. In other words, we had to say farewell to 5,000 of our employees," Kaya said. "Almost all of them were competent colleagues who did their jobs well. Along with the downsizing, we also went through a farewell process with our personnel."

What remains of the production base?

The factory count now stands at six, down from thirteen. Kaya said the company has shrunk sharply, particularly on the ready-made garment side, and has shifted its focus toward fabric production. The company is also evaluating entry into technical textiles as part of that pivot.

TYH Tekstil opened its first production facility and headquarters in Izmir in 2000. It subsequently launched plants in multiple provinces, including Manisa, Kirklareli and Edirne, and opened additional headquarters in Istanbul in 2003 and Amsterdam in 2021. The company develops collections, fabrics and accessories, and has run projects to build 3D design and production processes under a digital transformation program.

Its client portfolio spans Lacoste, Ralph Lauren, Tommy Hilfiger, Calvin Klein, Gant, Armani, Massimo Dutti, Bestseller and Varner-Gruppen — a roster that gives the closure direct implications for Western brands sourcing woven and knitted product from Turkey.

Is this an isolated case?

No. The TYH contraction follows the shutdown of Orta Anadolu, a 73-year-old textile group and established denim fabric producer, which announced last month that global pressures had halted its output. Orta Anadolu stopped production as of September 11, 2026, and fully closed all of its production facilities on October 12, 2026.

Orta Anadolu management said it had evaluated numerous alternatives, including cost-reduction programs, productivity-enhancing measures and restructuring options, but concluded that continuing operations was not viable under current economic conditions.

Together, the two cases signal an accelerating shakeout in Turkish textiles: one mid-sized garment supplier shrinking by more than two-thirds of its headcount, and one of the country's oldest denim mills exiting production entirely within roughly a month.

For sourcing directors, the immediate questions concern order continuity at TYH's six remaining plants, the status of contracts under concordato protection, and the capacity gap left in denim fabric supply following Orta Anadolu's exit. Neither company has disclosed customer-by-customer reallocation plans, and further consolidation across the Turkish supply base appears likely as cost pressures persist.