A total of 1,800 employees lost their jobs as Turkey's Tekerekoglu Tekstil, the world's third largest home textile manufacturer and producer of the Elegant brand, suspended production due to financial problems stemming from the worsening global crisis.

Tekerekoglu Tekstil, which has some $42 million of debt, sold two of its five factories in order to pay its credit loan. The remaining three factories together with the company's other real estate assets will also be sold, the report said.

As the crisis sinks its teeth into the real economy worldwide, Turkish producers operating in the textile industry have implemented a number of cost cutting measures including reducing production, lying off employees and downsizing.

Giants of the Turkish textile sector, such as Sonmez Filament, halted production, while Edip Iplik announced it would pull out of the sector as of December, 31,2008. Many textile manufacturers have shut down operations across Turkey, including 14 factories near Istanbul.