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Then came Brexit. At the end of 2016, after years of churning out the latest creations of mainly British fashion brands, Alin Benta turned out the lights at his textile factory in Romania ’s second city of Iasi. When it reopened in early 2017, Benta was producing upholstery for Swedish IKEA. The reason? Brexit. Overnight, as the pound went into freefall on the back of Britain’s shock vote to leave the European Union in June 2016, Benta saw his profits evaporate. Like many of Romania’s roughly 4,500 textile factories – employing more than 200,000 people in one of the EU’s poorest countries – Benta’s operation relied heavily on British clients who paid in pounds. As sterling tanked some 20 percent against the Romanian lei, the factory’s monthly earnings fell by 50,000 lei (9,400 GBP) – “money for salaries, taxes, utilities,” Benta said. Faced with the risk of penalties if he failed to meet year-long contracts, Benta boarded a plane to London to renegotiate with intermediaries who stood between him and the buyers.
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