Major Indonesian Clothing Maker Sritex Declared Bankrupt (1)

One of Indonesia’s largest clothing companies PT Sri Rejeki Isman has been declared bankrupt by a local court, just two years after it reached a debt restructuring agreement with creditors.

A commercial court granted the bankruptcy petition filed by plaintiff PT Indo Bharat Rayon against Sritex, as the company is widely known, a court spokesperson told Bloomberg News. The decision also covers Sritex’s subsidiaries and the company has eight days to appeal the decision, the spokesperson added. The court is in the island of Java, where Sritex is based.

The company, which has sewn clothes for global brands including H&M, ...