About 90% of Iran's 3,600 textile factories are at risk of closure, according to Alireza Mahjoub, a member of the Majlis Social Commission and director general of Iran Labor House.

Mahjoub was reported by Iran Daily as saying that a worsening financial situation was wreaking havoc on the sector.

"Unfortunately, Iran Termeh and Tehran Patou companies, which were among the country's largest textile units until recently, are now wrestling with a crisis," he said, attributing their financial troubles to mismanagement.

Mahjoub argues that the government must increase textile workers' base salary to IRR2.5m ($270) per month if it does the same with its own pay system.

Moreover, Jamshid Bassiri, secretary of Textile Industries Association, was reported by the Iranian Labour News Agency as saying that state funds announced last year were not enough to help the textile industry recover.

"Our main challenge is the unsupportive rules and regulations," he said, adding that the government should work to get production to meet global standards.