John Foos, a company that had been reducing its national sneaker production and replacing local assembly with imported parts, announced it will close its plant in San Isidro before the end of the month. The plant will have only 50 employees left, most of whom will be laid off, down from a workforce of nearly 400 in 2023. Founded in the 1980s and a symbol of teenage fashion in the '90s and 2000s, the historic firm will begin sourcing its finished products mainly from Thailand and Vietnam. This move adds the company to a list including Dass (Nike/Adidas), Whirlpool, Electrolux, and dfac, which will also cease local production between 2025 and 2026 to import finished goods, largely due to falling consumption and the opening of imports. In recent months, a growing number of companies have stopped manufacturing to start importing from China. One such company is the historic glass manufacturer Rigolleau, which reduced its local production, carried out layoffs, and will begin importing finished tableware from the Asian giant. John Foos justified the measure as part of an 'internal restructuring' to ensure business sustainability and project the brand into the future. The stated cause is falling consumption in an environment of increasing competition with lower-cost foreign products, following a 2025 financial report with losses exceeding $5.5 billion. At its peak, the Beccar plant produced nearly one million pairs of sneakers, supplying a network of over a thousand sales points across the country and selling at affordable prices in the Argentine market where similar imported brands like Converse All Star cost twice as much. After production ceases, the company will operate under the name Flingday S.A., retaining only minimal administrative staff to maintain commercial operations. It was reported that the company offered severance packages ranging from 60% to 70%, with a warning that it might file for preventive bankruptcy if agreements are not reached quickly. From father to daughter Founded by Miguel Angel Fosati, a footwear salesman who dreamed of manufacturing vulcanized sneakers (flexible and durable) in Argentina and exporting them worldwide. Many consumers believed the brand came from the United States. The company came under the leadership of the founder's daughter, María José Fosati, a doctor, in 2022. She relaunched the brand and made it popular among young people again, as in the '90s. After a significant family capital investment, production increased from 1,700 pairs in 2021 to 4,000 pairs per day in 2023. The opening of foreign trade put the company in a new scenario in recent months. It was not an exception. The opening of imports, combined with falling consumption, has caused two other historic companies operating in the country to proceed with layoffs and change their production model. These are the Brazilian Baterías Moura, which will close two production lines, and Lumilagro, which has carried out dozens of layoffs and started bringing its products from China. In this context, the president of Georgalos, Miguel Zonnaras, admitted that they already produce their most popular candy, Flynn Paff, in China for import and sale in the local market. The textile and footwear sector is one of the most affected in recent months. Official data shows a year-on-year drop of over 22% in the first two months of the year compared to the same period last year.
