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.