Apparel company Esprit plans to submit for self-administered bankruptcy.
Esprit, a well-known fashion brand, is gearing up to file for insolvency amidst the growing wave of bankruptcies in the German fashion industry. The company plans to file for insolvency on Wednesday, for its European holding company and seven other businesses, at the Düsseldorf Local Court. The goal is to restructure Esprit's European business, primarily managed from Germany, and set it up for success in the future.
Discussions are already underway with a financial investor who is interested in acquiring the brand rights for Europe and continuing the operations. Esprit had previously filed for bankruptcy in Belgium and Switzerland back in March.
This marks the brand's second insolvency filing in just four years. In 2020, when the coronavirus pandemic forced stores to shut down, Esprit sought protection from insolvency laws and laid off roughly a third of its workforce, resulting in the closure of 100 stores. Currently, 1,500 employees are still employed at the companies facing bankruptcy. Operations are set to proceed "until further notice."
Esprit Holdings, the parent company, is listed on the Hong Kong stock exchange but predominantly focuses on its European business. Germany alone accounts for over half of the company's sales.
The insolvency experts Christian Gerloff and Christian Stoffler have been brought on board to help with the restructuring efforts. They have made a name for themselves in the fashion industry, having successfully restructured companies like Escada, Gerry Weber, and Adler Modemärkte.
Read also:
- Year of climate records: extreme is the new normal
- Precautionary arrests show Islamist terror threat
- UN vote urges Israel to ceasefire
- SPD rules out budget resolution before the end of the year
- The fashion chain Esprit, facing financial struggles, is hoping that self-administrated bankruptcy will allow them to restructure and revive their European operations, which make up over half of their total sales.
- The wave of bankruptcies in the German fashion industry has reached Esprit, a renowned fashion brand, as they join a growing list of companies seeking insolvency protection.
- Despite the company's second insolvency filing in just four years, Esprit remains hopeful that their partnership with a financial investor will help them emerge from this period of self-administrated bankruptcy with a stronger, more sustainable fashion business in Europe.
Source: www.ntv.de
