Formal fashion manufacturer and retailer Bortex has announced that it will be closing down its Tunisian subsidiary’s operations “with immediate effect” following the deep negative impact of the COVID-19 pandemic and associated restrictions.

In a statement posted to the Malta Stock Exchange, Bortex Group Finance plc said that the pandemic impacted the fashion industry hard, “and the sub-sector related to formal wear within that industry even harder”.

It said that with offices and shops in most markets being closed for much of the last year, and all events normally connected with formal attire, such as weddings, baptisms and corporate events, being prohibited, demand for formal wear has slumped.

“This has meant significant reductions for Bortex international orders and as a result, losses at its Tunisian manufacturing subsidiary, Bortex Tunisie Sarl have been mounting.”

The Group noted that the parent company in Malta had been making good for these losses since March of last year.

It even resorted to accumulating garment inventory for which it has no immediate sales orders, in order to provide work for its Tunisian subsidiary.

It said that although it hoped these actions would be sufficient to enable Bortex Tunisie to ride out the pandemic, it is no longer in a position to continue with these extraordinary efforts without endangering the overall health of the entire Group.

“The Board of Directors have therefore decided to bring to an end its operations in Tunisia with immediate effect.”

The Group said that its manufacturing operations in Malta as well as those in other locations in the European Union and the Far East are unaffected by this decision.

There will also be no impact on its local and overseas fashion retail activities and international distribution operations.

The Group further sought to allay investors’ concerns by pointing out that impairments and provisions against the entire value of the Tunisian investment as well as for any possible losses on inventories had already been taken in the financial statements for the year ending 31st October 2020.