One of Venezuela's leading textile companies, Sudamtex de Venezuela, has filed for liquidation to enable it to cover its financial obligations. Domestic recession and growing competition from imported textiles have eroded its sales the company said.

A Sudamtex spokesperson told Reuters that entering into liquidation would give it legal protection to sell assets over a year to meet its financial obligations.

In April the company restructured its debt after failing to complete a previous plan put in place in 2001.