Spain's beleaguered textiles industry, reeling under mounting bankruptcies and layoffs, hopes to obtain a credit line from state credit agency ICO, a spokesman for top industry lobby Consejo Intertextil Espanol (CIE) has confirmed to just-style.

The talks come as both big and small fashion retailers are bleeding red ink and consumers shun stores during the worse economic downturn in a decade.

Earlier this week, textiles firm Marie Claire said it will dismiss 100 workers to survive the crisis, adding to industrial major La Seda de Barcelona (LSB)'s recent announcement that it will eliminate 114 workers from its Barcelona fibres plant in efforts to exit its textiles business and focus on its key plastics franchise.

The company will gradually unwind the business, which will see over 300 people leave the firm or receive job transfers, according to LSB offcials.

The CIE hopes to obtain a line of credit to help cash-starved textile SMEs "as soon as possible," the spokesman said without disclosing the amount required to keep the industry afoat.

The industry's requests may fall on silent ears as the government is likely to prioritise help to the more vital auto, construction and tourism industries.

From January to September, Spain's textiles industry lost 12,000 jobs, leaving the headcount at 151,312 headcount. Exports fell 13% to EUR4.54bn.

A string of high-profile companies have gone bust or are facing bankruptcy including midsize fashion giants such as Adolfo Dominguez and stretch-fibers firm Dogi, analysts say.

By Ivan Castano-Freeman.