Indonesia’s Supreme Court has upheld the bankruptcy ruling on distressed textile company PT Sri Rejeki Isman, according to people familiar with the decision, risking layoffs for tens of thousands of its employees.

The court on Wednesday rejected the appeal from Sritex – as the company is more commonly known – to overturn a lower court ruling in October that declared the company bankrupt, said the people, who asked not to be identified as the decision was not yet public.

The ruling will raise uncertainties for the company’s roughly 50,000 employees. Indonesian President Prabowo Subianto had previously ordered his ministers to come up with rescue options for the company, once the country’s largest clothesmaker.

The textile industry is one of the biggest employers in Indonesia and any widespread job losses would be an early setback for Prabowo’s new government, which aims to turbo-change economic growth to 8% from the current 5% pace.

A court in the island of Java, where Sritex is based, granted the bankruptcy petition against Sritex in October after the company and its subsidiaries failed to meet the payment obligation set out in a debt restructuring agreement from 2022.

The clothing giant, which has sewn clothes for global brands including H&M, Uniqlo and Zara, fell into distress during the pandemic after orders slumped. It reached an agreement with creditors in early 2022 to restructure IDR20 trillion ($1.2 billion) of debt but has since struggled to recover from the pandemic’s impact.

Sritex’s chairman and chief executive officer declined to comment when stopped for interview by Bloomberg on Thursday. Calls to the company’s chief financial officer went unanswered.