"The North Face exodus from Turkey highlights crisis", 15 September 2025

Rising production costs, inflation, and an unstable exchange rate have crippled the Turkish textile sector’s competitiveness, resulting in brands relocating to other sourcing countries, leading to a wave of factory closures and layoffs.

A story published last week in the Turkish press about Gelişim Tekstil, a key supplier for brands like The North Face, owned by VF Corporation, is a stark example of the unfolding crisis.

Gelişim Tekstil, which once held the title of The North Face’s second-largest manufacturer globally, says the...brand has reduced procurement levels by 80%, with orders shifting to Vietnam and Bangladesh due to lower costs....The shift could see half of its 1,200 employees laid off...

A reported 2,659 companies in the apparel and ready-to-wear sector have closed, resulting in the loss of over 45,000 jobs. A report from the Tarsus Chamber of Commerce highlights that many textile firms are now selling their machinery to foreign buyers, particularly in Egypt, at a fraction of their value, as they can no longer cope with domestic costs. The Baltalı Group, for instance, recently announced the closure of two factories, leaving 650 people unemployed.

In a strategic shift to survive, many Turkish manufacturers are moving their operations to northern Africa, with Egypt emerging as a major destination. This relocation is driven by Egypt’s significantly lower labour costs, cheaper energy prices, and favourable trade agreements, such as the Qualified Industrial Zones (QIZ) agreement with the U.S., which allows for duty-free exports...