In 1910, a pair of brothers from Gerona, Spain arrived in Ecuador with a dream of creating a textile empire. They got their start in Ambato, but expanded their business to Atuntaqui in 1924. With the help of hardworking locals, their business grew.

The people of the Atuntaqui region, and specifically the Otavalo Valley, were skilled in textiles before the arrival of the Spanish. In pre-Columbian times, the area was known for fine spun and woven works. The precolonial textiles were popular with the conquistadors, who then capitalized the skills of local craftsmen and women.

Atuntaqui's location on the railroad and between the provincial capital of Ibarra, and the well-known towns of Otavalo, Cotacachi, and Cayambe, made it the perfect spot for importing machinery and workers, and exporting the completed textiles. In the 1930s, the factory became the birthplace of one of Ecuador's first labor unions. From 1924 to 1997, the factory was considered the most important textile center in northern Ecuador.

In 2014, the factory was remodeled into a cultural center. It now includes a large museum showcasing the machinery, as well as exhibits about workers rights throughout Ecuador.