A 40-year-old brand seeks judicial protection
Argentina's textile industry crisis has a new casualty. IGT33 S.A., the parent company behind Reverify Pass and Be Rebel, has filed for concurso preventivo (bankruptcy protection) with Argentina's National Commercial Court No. 18, which formally opened proceedings on July 14, 2026. The declared liabilities exceed ARS 7 billion (approximately USD 3.5 million at current exchange rates, or roughly USD 35 million in 2024 dollars), reflecting the company's severe financial distress amid a deep consumer spending slump and an influx of imported goods from Asian e-commerce platforms.
The company, with more than four decades in the Argentine market and an industrial plant in Ricardo Rojas, Tigre (a suburb of Buenos Aires), experienced a devastating 2025: sales of $11.814 billion (a 24% drop in constant currency compared to the previous year) and losses of $4.365 billion — nearly nine times the red ink of $515 million recorded in 2024.
The numbers behind the collapse
- Total liabilities: more than $7 billion
- Bank debt: $3.276 billion (Banco Nación $2.264 M, Banco Provincia $866 M)
- Pension obligations: $1.725 billion
- Tax debt: $975 million
- Rejected checks: 65 for $300 million
- 2025 losses: $4.365 billion
- Employees and stores: more than 100 workers and 13 rented locations
Why did it happen?
The legal filing describes a confluence of factors since 2024 that ultimately crushed operations:
- Sharp decline in domestic apparel consumption
- Influx of international platforms like Shein and Temu, which import products without any local physical footprint
- Prohibitive credit costs: interest rates exceeded 100% annually during 2025
- Rising production, energy, and logistics costs, with limited ability to pass them on to consumers
“When the rules of the game change, you have to compete against players who have been better equipped for years. It’s an uphill battle,” admitted the company's CEO, Pablo Sonne.
A 'metamorphosis' of the business model
Far from a shutdown, the company is seeking a complete reinvention: shifting from a manufacturing-centric model to a hybrid one that combines local production with importing finished goods. The goal is to compete more effectively on price and variety.
“We had to make a shift, moving away from a purely productive structure to adapt to one based on imported products. Once imports opened up, we began the transition because Reverify Pass is still a brand that competes in the international market,” Sonne explained during the filing.
The firm has already started closing unprofitable stores in shopping malls and along the Atlantic coast, focusing on e-commerce and franchising. Though it maintains 13 active locations, the combined pressure of rents and common charges made the operation unsustainable.
Industry-wide distress
IGT33's situation is not isolated. According to the Federation of Argentine Textile Industries (FITA), 330 textile businesses have closed and 15,468 formal jobs have been lost over the past twelve months. Reverify Pass was a prominent name in men's fashion, with stores in major Buenos Aires shopping centers such as Unicenter, Alto Palermo, Abasto, and DOT, among others.
Argentina's bankruptcy law (Ley 24.522) allows a company to restructure its liabilities, suspend foreclosures, and gain breathing room to negotiate with creditors. Creditors have until September 23, 2026 to verify their claims; the individual creditors' report is scheduled for November, the verification resolution for December, and the general report in February 2027.
Key facts
Headquarters: plant at Marcos Sastre 1804, Ricardo Rojas, Tigre
Filing date: June 24, 2026
Proceedings opened: July 14, 2026
Ceased payments: May 16, 2026
Creditor claim deadline: September 23, 2026