The encyclopedia · Strategy & Leadership · Strategic decision · 2024–2025
3F Tekstil supplied Zara and Bershka — 60% interest rates bankrupted it
Istanbul textile manufacturer 3F Tekstil, a supplier to Zara, Bershka, and Mango, was declared bankrupt in October 2025 after interest rates hit 60-70%.
3F Tekstil · 2025-10-14
What happened
3F Tekstil was an Istanbul-based textile manufacturer that produced clothing for some of the world's largest fast-fashion brands, including Zara, Bershka, Mango, Next, LC Waikiki, and Resort. It also operated a branch in Barcelona, Spain. The company was a significant supplier in Turkey's textile export industry.
In 2024, as Turkey's economy faced soaring inflation and interest rates, 3F Tekstil sought concordat (bankruptcy protection) and received a one-year protection period from creditors. The company attempted to restructure its debts and continue operations under court supervision.
The protection period failed to restore the company's financial health. In October 2025, the court terminated the concordat commissioner's mandate, lifted all protective measures, and ordered the liquidation of 3F Tekstil. A company official stated that when interest rates suddenly reached 60-70%, it became a situation the business world could not bear, and companies began struggling with debt management.
Why it happened
- Turkey's interest rates surged to 60-70%, making debt service impossible for a capital-intensive textile manufacturer — the financing costs alone overwhelmed the business
- A one-year concordat protection period was not enough to restructure when the underlying economic conditions — inflation, currency weakness, and collapsing demand — continued to deteriorate
- 3F Tekstil's customer base of fast-fashion giants gave it volume but no pricing power — when costs rose, the margins were too thin to absorb the shock
The lesson
A concordat buys time but does not fix the economy. When interest rates hit 60%, no restructuring plan can make debt affordable — the only question is how long the protection period lasts.
Sources
- Haberler — Turkey's textile giant has officially declared bankruptcy (Oct 2025)
- Memleket — Textile giant bankrupt, Zara and Next supplier closed
- Yeni Akit — Zara and Bershka supplier, Turkish textile giant bankrupt
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