Turkish brands file for bankruptcy protection

CNC
Added On September 9, 2018

In Turkey, the effects of the falling Turkish lira are showing, as multiple well-known brands have filed for bankruptcy protection, due to their "problems in short-term payments".
 
A Turkish court recently decided to offer bankruptcy protection to Hotic, a well-known Turkish shoe and accessories brand.
 
The 80-year-old company filed for bankruptcy protection following problems with short-term payments. 
 
It linked the issues to a recent shortage of cash flow in the market and the unpredictable hike in interest rates, due to the excessive depreciation of the Turkish lira.
 
The Turkish currency lira has lost over 40 percent of its value since the start of this year, while inflation increased by nearly 18 percent in August, marking a 15-year high.
 
Following Hotic's suit, Turkey's renowned jewelry brand Gilan also applied for bankruptcy protection over roll-over credits.
 
Seeing well-known brands encounter financial problems has added to concerns in the Turkish market, with some worrying about a potential domino effect on the economy.