Dogi International Fabrics, the Catalan manufacturer of elastic textiles designed for lingerie, beachwear and sportswear, is in suspension of payments; a situation which only concerns its Spanish branch. The board of directors of the company, floated on the stock exchange in 1998, has therefore decided to recapitalise the business in order to ensure its durability.

Dogi International Fabrics factory at El Masnou in Spain

Debts of the business have increased to €42 million, of which €28 million is owed to financing bodies, €5 million to suppliers and €3 million to public administration.

The Spanish group must therefore recapitalize it subsidiary in the face of its reduction in turnover, surcharges caused by the transfer of a factory for new systems in Dogi II in Catalonia, and the difficulty of renegotiating credit lines with the banks at the moment.

The group owns factories in Spain, Germany, Thailand, China and the Philippines.

By Jonathan Fulwell (Source: Sarah Ahssen)