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Austrian jeans maker Poker Jeans will shut down its plant in Gersekarát, northwest Hungary at the end of the month and move its tailoring activity to its base in nearby Csehimindszent, business daily Napi Gazdaság reported on Wednesday.
The plant will be closed by the end of April and employees will be laid off, Poker Jeans and the local council of Gersekarát confirmed. Poker Jeans blamed the closure on the flood of cheap clothing from Asia. According to the paper, the company is contemplating moving production from Hungary to Pakistan to take advantage of cheaper labor costs.
Poker Jeans has been operating in Hungary for 15 years.