The Argentine textile sector is facing a new wave of distress. IGT33 S.A., the company behind men's fashion brands Rever Pass and Be Rebel, has entered a concurso preventivo de acreedores — a legal process similar to Chapter 11 bankruptcy protection in the U.S. — with a debt exceeding $7,000 million Argentine pesos (about $7 billion ARS). The move comes after the firm posted losses of $4,365 million pesos in the 2025 fiscal year, a ninefold increase from the previous year's $515 million loss.
From 40 Years of History to a Mounting Crisis
Founded over four decades ago, Rever Pass and Be Rebel have been staples in Argentine men's fashion. But the economic storm of recent years proved overwhelming. According to the judicial filing, the National Commercial Court No. 18 formally opened the bankruptcy protection process on July 14, 2026. The company's sales dropped 24% in constant currency, from $15,475 million in 2024 to $11,814 million in 2025.
The gross profit collapsed from $8,962 million to $5,678 million, while selling and administrative expenses rose to $8,567 million. A negative financial result added another $1,200 million. The final net loss for 2025 was $4,365 million, compared to a $515 million loss the prior year — a dramatic ninefold surge.
The Debt Breakdown
- Bank debt: $3,276 million (Banco Nación: $2,264 million; Banco Provincia: $866 million)
- Tax debt: $975 million
- Social security obligations: $1,725 million
- Rejected checks: 65 checks totaling $300 million
Why It Happened: Shein, Temu, and the Credit Crunch
The company's court filing points to a competitive asymmetry with international e-commerce platforms like Shein and Temu. These platforms sell directly to consumers without maintaining physical stores, paying local taxes, or sustaining a local workforce. Argentine brands, in contrast, carry the full weight of rental costs, payroll, social contributions, and logistics.
'When imports were opened, we had to adapt, because Rever Pass is a brand that competes with the international market. It's a very disadvantageous race,' said Pablo Sonne, CEO of the company.
During 2025, borrowing costs skyrocketed to nearly 100% annually. Changing consumer habits also made mall leases unsustainable, forcing the closure of several stores in shopping centers and coastal resort areas. The company still employs over 100 workers and operates 13 retail locations, along with a factory in Ricardo Rojas, in the Tigre district.
A Survival Plan: Blending Local Production with Imports
To turn things around, IGT33 plans to shift from a primarily manufacturing-oriented model to one that combines local production with imported finished goods. This would lower costs and allow competitive pricing against overseas rivals. The company formally ceased payments on May 16, 2026, when it could not meet severance obligations. Salaries have been paid in two installments, and tax payment plans have lapsed.
An Industry in Freefall
The troubles at Rever Pass and Be Rebel are not isolated. According to the Federation of Argentine Textile Industries (FITA), 330 textile establishments closed in the past 12 months, leading to a loss of 15,468 formal jobs.
Despite the grim scenario, CEO Pablo Sonne remains hopeful: 'Even though the environment is still very competitive, we are very optimistic about the summer collection. We have been optimizing suppliers, and the offer will be very good, with very competitive prices.'
Creditors have until September 23, 2026 to file their claims. The individual report is expected in November, a resolution on verification in December, and the general report will follow in February 2027.
Source: Company judicial filing and statements from IGT33 S.A. – Information based on public court records.