The historic clothing brand that entered into crisis: it lays off employees and blames imports.

Textilana SA , owner of the historic Mauro Sergio sweater brand, reduced its production by 20% and initiated an "internal restructuring process" that left 150 workers out of the plant in Mar del Plata .

The company, which once became a symbol of the national textile industry with an integrated production model, is currently facing overstocking , low turnover , and a market increasingly saturated with foreign products. In fact, it blames the opening of imports and the decline in local sales due to the high Argentine cost versus the varied online options or what is seen in Chilean stores.

Textilana was founded in the 1970s under the name Todis and evolved from a company dedicated to spinning for third parties to establish itself as one of the country's leading clothing brands. Today, however, it finds itself caught in a critical sectoral context: 70% of the clothing consumed in Argentina is imported, and domestic production is experiencing declines of up to 26%, with more than 5,000 layoffs and at least 10,000 suspensions so far in 2025, according to the Noticias Argentinas news agency.

In the case of the Mar del Plata plant, unions warn that the factory is accumulating large volumes of unused inventory and is experiencing a winter with very limited commercial activity.

The staff reduction reduced the workforce from 350 to 200 employees, amid a backdrop of layoffs without compensation and resignations motivated by low wages or late payments.

Nationally, the numbers reflect a profound crisis: 68 SMEs closed their doors between January and July, the sector is using only 40% of its installed capacity, and textile imports grew by 93% in the first half of the year.

Much of this clothing arrives in the country through platforms such as Shein or Temu , which channel retail purchases at dumping prices.

According to the Economic Federation of the Province of Buenos Aires (FEBA), clothing purchases abroad grew 136% in the first five months of the year, reaching a record high of $1.572 billion . The average price per kilo of imported clothing is just $5.67.

The Textile Workers Association (AOTRA) warned that more than 40% of the Buenos Aires textile industry remains paralyzed , with factories in the suburbs closing and an accelerating deterioration in the labor market throughout the chain.

This is a sector that employs more than 530,000 people—69% of them women—and encompasses 24,000 companies in 17 provinces, but is currently facing its worst crisis in decades.