Overview
- The company executed two rounds of 56 dismissals over the past two months, leaving the La Banda factory with about 400 employees versus roughly 1,200 at its peak.
- Coteminas said falling purchasing power, a surge of low‑cost imports, reduced duties on imported goods and rising energy and financing costs drove the cuts.
- Management reported a sharp drop in sales and excess inventory and said more job losses could occur if the market backdrop remains unchanged.
- A local union representative said the company attributed difficulties to cheap imports and indicated severance payments will be made in installments.
- Industry data show a 24% year‑on‑year activity decline in October 2025, capacity use near 32.5% and more than 16,000 formal jobs lost since December 2023, with other textile firms also closing plants or reducing staff.