Once a textile giant, 107-year-old Varteks now on the brink
- by croatiaweek
- in Business
VARAŽDIN – Once a cornerstone of the Croatian textile industry, Varteks is now battling for survival. With debts exceeding €35 million, store closures, and an urgent search for investors, the company faces an uncertain future.
Founded in 1918 as the Varaždin Textile Factory, Varteks has spent over a century evolving to meet market demands while maintaining its reputation for quality and classic elegance.
It began producing woollen yarn and fabrics in 1922, followed by clothing in 1926, and later became a recognised name in the fashion world.
Over the years, Varteks has collaborated with global brands like Hugo Boss, J.Lindeberg, and Zadig & Voltaire, cementing its status as a leader in the industry.
Key milestones included its rebranding in 1948, partnerships with Levi’s in 1983 and Hugo Boss in 1994—where it ranked among the top contractors for the latter for over 15 years—and the launch of luxury collections in 2018 using high-end fabrics such as cashmere, alpaca, and Loro Piana 130’s.
View this post on Instagram
However, despite its rich history, recent years have been turbulent. The company faced mass layoffs and bankruptcy proceedings in 2024, with only a handful of stores remaining open.
By May, just two locations – Zagreb and Varaždin – will continue operating.
Production briefly restarted in October 2023 but was halted again in January due to mounting debts. The company has already sold most of its assets, including properties in Serbia and Bosnia and Herzegovina, to cover financial obligations.
View this post on Instagram
As HRT reported, bankruptcy manager Tomislav Đuričin remains hopeful, stating that potential investors have shown interest in creating a recovery plan. However, without a strategic partner, liquidation remains a looming threat.
Among Varteks’ biggest creditors are Zagrebačka banka, META Nekretnine, and private investor Stjepan Čajić, who remains optimistic about the company’s revival.
View this post on Instagram
His goal is to liquidate remaining assets quickly so that workers can receive severance pay, with hopes to restart production after the summer.
If no solution is found, Varteks—once an employer of over 7,000 people and a symbol of Croatian textile excellence—could be forced to shut down for good.
