Bankrupt Spanish textiles firm Dogi could sell parts of its European and Asian factories and dismiss some of their 850 workers, a company spokeswoman confirmed to just-style on Friday (5 June).

"We are in negotiations to do this already," she said, without disclosing how many workers could be laid off. She said the company could either sell the factories or allow investors to take a stake in its business.

Dogi, which has been losing money for five years, filed for bankruptcy recently amid mounting debts and falling sales triggered by the global recession.

The Barcelona-based firm has factories in Spain, Germany and China that in total employ 850 workers. The Spanish factories - the main of which is in El Masnou - employ 318.

Dogi owns its factories in Spain, Germany and China. However, its factories in Sri Lanka and Thailand are jointly owned with local partners.

The company hopes the plan will allow it to emerge from bankruptcy in eight months. Dogi filed for bankruptcy with debts of EUR 42m, EUR 28m of which is held by banks.

The spokeswoman would not reveal the main creditors but said more details will emerge as the viability plan takes its course.

Dogi hopes to close 2009 with EUR12m in losses. However, it hopes to cut its debt by 50%, the spokeswoman confirmed.

By Ivan Castano-Freeman.