Concordat Filings Surge in Turkey Amid Economic Slowdown, Textile and Construction Hit Hardest

The ongoing economic contraction in Turkey’s real sector has led to a sharp increase in concordat applications, as weakening demand continues to strain businesses across multiple industries. According to judicial data, the number of temporary concordat decisions issued by Turkish courts jumped by 172% in the first quarter of 2025 compared to the same period last year, reaching a total of 583 cases.

March Concordat Filings Hit Record Levels

In March 2025 alone, a staggering 414 companies filed for concordat, more than doubling the figure of 173 applications in March 2024. Following court reviews:

• 18 companies were declared bankrupt,

• 189 were granted temporary respite, and

• 122 received final concordat approval.

In total, for Q1 2025, out of 1,283 concordat filings, 43 companies went bankrupt, while 973 received either temporary or final protection orders.

By comparison, in the first quarter of 2024, 492 concordat applications were recorded, with 23 bankruptcies and 321 temporary or final approvals.

Textile, Construction, and Metal Manufacturing Face the Highest Risk

The most affected industries were textile, construction, and metal product manufacturing, sectors that are heavily impacted by falling consumer demand and rising input costs. Analysts note that the construction and manufacturing slowdown reflects deeper macroeconomic challenges, including reduced investment, tighter credit conditions, and inflation-driven cost pressures.

April Concordats Continue Despite Holiday Season

Even during the April holiday period, the courts continued processing new cases. One notable ruling came from the Ankara 1st Commercial Court of First Instance, which granted a temporary concordat to Tabi Tekstil, a company established in 2014 and known for its eco-conscious bedding collections.

The company had rapidly expanded after opening its production facility in 2015 and became a recognized name with its range of products, including “Handmade Dowry Sets,” “Jacquard Bedspreads,” and “Exclusive Silk Duvet Covers.” Despite its market success, Tabi Tekstil fell victim to the sector-wide downturn and sought protection.

Erdem Çikolata Joins the List of Struggling Brands

In a noteworthy development in the food sector, Erdem Çikolata, a chocolate manufacturer with a 15-year legacy and strong brand presence in Central and Southeastern Anatolia, also filed for concordat due to financial strain. The company was granted a 3-month temporary protection order on December 19, 2024, as listed on İlan.gov.tr.

A court hearing is scheduled for March 6, 2025, and creditors have been invited to file objections within 7 days of the notice. The case highlights how the economic crisis continues to impact even long-established brands.