More brands of clothing affected by declining consumption: AY Not Dead entered into pre-emptive competition

Affected by the economic situation and the decline in consumption, more and more clothing brands have been forced to apply for bankruptcy to solve their financial problems. Now it was the company's turn AY Not Dead who just took part in a prevention contest, as indicated in the Official Journal.

The competition is dealt with in the secretariat 36 of the National Court of First Instance in the No. 18 Trade. In July and September, the reports will be presented and the Informative Audience will be held in March of next year.

This news is in addition to other cases of front-line clothing manufacturers, such as Big Bloom, owner of Wanama and Cook brands, or Legacy, which also announced its bankruptcy filing. Clothing is one of the hardest hit in the domestic market: February sales were down 13.8% from the same month of the year previous, according to CAME data.

AY Not Dead was born more than ten years ago in a family business founded by brothers Noel, Diego and Martín Romero, whose first site is located in Palermo. In his early days, he attracted attention for both his innovative designs and for his strange name, badociated with businessman Alfredo Yabrán for his initials., something that its creators have repeatedly denied. Shortly after, they partnered with the designer and the businesswoman Maria Cherñajovsky -The dream of Maria dear– It helped them to boost the brand.

Today, the brand has 14 stores in Argentina, in the cities of Buenos Aires, La Plata, Córdoba and Santa Fé., among others. The company came to export its clothes in multi-brand stores in Uruguay, Brazil and Chile, as well as in the United States.

According to the Argentine Garment Industry Chamber, shrinking demand for clothing has a negative impact on the domestic industry: in January, the drop in the quantities of garments made was 12.5% ​​from one year to the next., according to data from the Indec. At the same time, the textile-supplier link of the industry's main input – recorded a 27.9% drop in output.

"The financing of companies in the sector remains one of the main problems: the interest rate for current account advances was 52.3% annual in February. The recent announcements by the national government in the amount of 60 billion dollars intended for check discount at an annual rate of 29% will reflect in reality and will help alleviate the lack of access credit and high interest rates, which make companies less competitive, "they explained from the CIAI.

Despite the strong devaluation of the peso last year, the the imports clothing has closed 2018 with USD 509.6 million, or 9.9% more than in 2017. While exports in Argentina, clothes accounted for $ 21.3 million last year, 34.9% less than in 2017.