Many clothing stores in Jordan risk permanent closures in 2021 - sector representative

AMMAN — Nearly 10 per cent of Jordan’s clothing stores are expected to close during 2021, according to a sector representative.

In a phone interview, Jordan’s Textile and Readymade Clothes Syndicate President Muneer Deyeh, told The Jordan Times that additional closings are anticipated during the current year, as the sector faces protracted financial burdens, such as piled up utility bills, bank loans, taxes and unpaid rent.

“Currently there are 10,500 stores, many of which have received written warnings from their landlords to evacuate their shops due to being unable to pay rent,” according to Deyeh.

Furthermore, Deyeh added that the sector is facing an existential crisis, which needs to be addressed urgently, noting that “it is time for the government to make bold decisions and initiate positive actions”.

“It is important to take effective and swift measures to minimise the economic impacts of this crisis, so that many entities will not be forced to shut down for good,” Deyeh said, adding that emergency cash assistance is needed for hard-hit sectors in order to stay afloat.

The clothing industry had already been suffering before the pandemic, he said, pointing out that 600 stores were closed in 2019.

With a lack of operating capital and a precarious financial situation, the Central Bank should implement concrete programmes, particularly for the worst-hit sectors, to help inject cash into the national economy, Deyeh noted.

“The reopening of sectors while applying strict protocols is essential to a functioning economy amid a pandemic,” he added.