Belda Llorens, a historic name in the Spanish textile industry based in Banyeres de Mariola, Alicante, is on the brink of dissolution, prompting severe concerns for its workforce.

The company, known for sustainable yarn production, has withdrawn its redundancy plan which raised questions concerning the future stability of its 103 employees.

This decision follows weeks of uncertainty and a halted negotiation between the management and the employee committee, exacerbating fears that the firm may soon enter a creditor's bankruptcy process.

On May 2, Belda Llorens retracted the Employment Regulation File (ERE) aimed at dismissing employees after discussions with the labor representatives ended without an agreement.

While company officials indicated that severance payments would be made as liquidity allowed, no employee has since been contacted regarding exit negotiations, amplifying worries about job security in the factory.

Reports indicate that workers have been placed on paid leave, unable to report to their positions for over three weeks, as directed by management.

In the absence of transparency and ongoing negotiations, workers' representatives suspect that the management may be stalling to liquidate the company's remaining assets, including machinery and yarn stocks, without proper oversight or guarantees for employee rights.

The employee committee has raised alarms regarding potential unpaid settlements, claiming that despite the company's assertion of inadequate funds, the owners allegedly hold substantial real estate assets, including over 80 properties distributed across various regions in Spain, which contradicts the financial narrative presented to employees.

Additionally, they highlight a history of multiple employment regulation files dating back to 2023, all while dividends continued to be distributed among shareholders.

Belda Llorens has built a reputation for its commitment to sustainability, particularly through its Ecolife brand, which produces yarn in an eco-friendly manner—without water consumption or chemical additives.

The company reached an annual revenue of €18 million and produced six million kilograms of yarn, establishing itself as one of the leaders in the European open-end yarn manufacturing sector.

However, workers have filed complaints regarding financial discrepancies, alleging that the management reported losses to staff while publicizing improved performance metrics elsewhere.

The company had sought to avail itself of European financial assistance through strategic projects but has not responded to inquiries from the media as of the current reporting.

The employee committee further criticizes the conditions under which employees were placed on paid leave, as many were compelled to sign agreements without any security regarding payment fulfillment.