- Esprit closes all branches in Germany
Fashion conglomerate Esprit is set to close all 56 of its German stores by the end of the year, leaving around 1300 employees jobless, as reported by the German Press Agency. The European business' brand rights are to be sold to British financial investor Alteri, though Esprit declined to disclose the purchase price. The companies will be wound down, and products sold off in stores. Alteri will not take on the operational business, including stores or employees. The creditors' committee of the seven insolvent German Esprit companies has signed off on this, the company announced.
Esprit is to continue as a brand in the foreseeable future, it was stated. Products under the label will continue to be produced and sold in Germany, though the exact form is yet to be determined. Alteri, for instance, owns fashion company CBR Fashion, which includes the Street One and Cecil brands.
Esprit Europe GmbH and six other group companies filed for insolvency in May under self-administration. The proceedings were opened on August 1 by the Düsseldorf Regional Court. Esprit Europe GmbH serves as the parent company for Esprit in Germany, France, Belgium, Austria, the Scandinavian countries, Poland, and the UK. Purchasing and distribution are organized through various European subsidiaries and sub-subsidiaries.
Operations outside of Europe are unaffected
Esprit is active in around 40 countries worldwide. The insolvency does not affect operations outside of Europe. The conglomerate's parent company, Esprit Holding, is based in Hong Kong. However, Germany is the company's most important market.
In 2020, fashion conglomerate Esprit had already filed for protective shield proceedings for several German companies, leading to the closure of around 50 stores and the loss of approximately 1100 jobs.
Despite the closure of all German stores, Esprit plans to continue participating in international trade by maintaining its brand and producing products for sale in Germany and other countries. The sale of Esprit's European business' brand rights to Alteri highlights the company's commitment to continuing its trade operations worldwide.
