BTB-Bulgaria, one of the country’s major tailoring firms, is set to shut down following significant financial losses. The company reported a deficit of 4.73 million leva (approximately €2.42 million) for the most recent fiscal year, prompting management to announce layoffs affecting nearly 400 employees in Ruse, expected to take effect in early 2026. The firm, established in 1998 by Achim Bayerl, had been a key regional employer, producing garments for international fashion brands as well as its own clothing lines.

The closure highlights the mounting challenges faced by Bulgaria’s textile industry. Companies in the sector are grappling with intense global competition, compounded by the rise of ultra-low-cost online retailers such as Shein and Temu. At the same time, rising labor, energy, and raw material costs have squeezed profit margins, reducing the competitiveness of local manufacturers. Ruse, a historical hub of textile production, suffers further as it experiences another wave of factory closures following similar shutdowns in recent years.

The troubles in Bulgaria’s textile sector coincide with increased regulatory oversight in the European market. In 2025, the European Commission intensified its scrutiny of platforms like Shein and Temu, citing concerns over unfair trading practices, lack of transparency, and large-scale imports of low-quality products. Meanwhile, Shein’s physical expansion in Europe, marked by the opening of its first store in Paris in November, has drawn protests from local retailers and political figures, intensifying pressure on domestic manufacturers struggling to remain viable.