EMCC European Monitoring Centre on Change

Lys Yarns

Company/Organisation:
Lys Yarns

Geographic Location

Country: Belgium
Region: Prov. Oost-Vlaanderen; Vlaams Gewest
Location of affected unit(s): Zulte

Company

Sector: Manufacturing
Manufacture of textiles, apparel, leather and related products
13.1 - Preparation and spinning of textile fibres
Number Employed: 110

Employment Effects

Announcement Date: 08-12-2011
Planned Job Reductions min: 110
Planned Job Reductions max: 110
Type of Restructuring: Closure
Employment Effect Start: 01-01-2012
Foreseen End Date: 31-12-2012
Direct Dismissals: 110

Additional Information

Lys Yarns, one of the last wool spinning mills in Belgium, is about to close its site of Zulte, situated in Flanders affecting 110 employees. On the 8th of December, the company's management declared the intention to close Lys Yarns for business.

The company has struggled financially for the last few months. It is reported that the demand of manufactured textiles had weakened. Consequently, the announcement of the closure was long awaited.

Currently, there is no information about trade union or government intervention for this restructuring case. However, the common procedure in these cases is that public authorities try to find companies that would be interested in taking over the plant and its workers. In addition, the court which takes the case might declared the company as bankrupt with or without judiciary reorganization.