Business of textile industry companies in crisis conditions: The impact of the COVID-19 pandemic

Abstract

In this paper the subject of study is the characteristics of textile industry businesses in crisis conditions caused by the COVID-19 pandemic. The paper is based on the fact that economic entities in their operations often encounter disturbances caused by the action of a large number of factors that lead to a crisis in their operations and which imply the implementation of appropriate activities in order to overcome these disturbances. The textile industry is an economic branch that is sensitive to crisis disturbances and was particularly affected by the COVID-19 pandemic. The paper is structured so that it consists of three parts. In the first part of the paper, it studies the impact of the crisis on the operations of textile companies, with a special focus on the impact of the COVID-19 pandemic, as well as on the necessity of applying the concepts of circularity and sustainability. In the second part of the paper, the impact of the pandemic on the EU textile industry is analyzed, both from the point of view of the characteristics of that impact, and from the point of view of the measures and future strategic directions of the development of this sector. In the final part of the paper, the study focuses on the business characteristics of the domestic textile sector, while analyzing its indicators in crisis conditions and in the period from the onset of the pandemic until today. It is concluded that the application of the concept of a circular and sustainable economy represents the only long-term solution for the exit of this sector from the crisis, as well as a condition for its further development.