Kontoor Brands to close manufacturing operations in Mexico

Wrangler’s parent company Kontoor Brands is reportedly preparing to shutter its manufacturing operations in Coahuila, Mexico. According to local press, the fashion group is in the process of moving its production to Bangladesh.

It is believed that four plants located in Torreón, La Rosita, San Pedro and Coyote are to be impacted by the closures, with more than 2,000 jobs in the Comarca Lagunera region expected to be cut.

Mexican media outlets, and a further report from The Spin Off, said that associated personnel had been informed of the closures on August 13, with the process itself to be completed between the end of September and October 2025.

Kontoor Brands told the press that, following an evaluation of its supply chain, it opted to shutter the factories in a bid to improve efficiency and optimise costs. FashionUnited has contacted Kontoor with a request to comment.

The move seemingly contributes to the company’s ongoing Project Jeanius, a plan that was initially launched in 2023 with the goal of simplifying Kontoor’s global operating model, with a focus on the supply chain.

In its Q2 2025 results, Kontoor said it was raising its full-year outlook to “reflect stronger first-half results” and on the back of “greater visibility into our tariff mitigation initiatives”, president, CEO and chairman, Scott Baxter, said at the time.

FY25 revenues are expected to be in the range of 3.09 to 3.12 billion dollars, at an increase of around 19 to 20 percent, with a gross margin at approximately 46.1 percent.

In the report, the company considered the impact of tariffs, including a 30 percent reciprocal tariff on China and 20 percent on other countries. For Mexico, however, imports to the US remain exempt under the United States-Mexico-Canada Agreement (USMCA).