- 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 1,300 employees jobless, as reported by the German Press Agency. The European business's brand rights are to be sold to British financial investor Alteri.
Esprit declined to comment on the purchase price. The companies are to be wound down, and products in the stores liquidated. The financial investor will not take over the operational business, including stores or employees. Consequently, jobs in the stores and the Ratingen headquarters will be lost. The creditors' committee of the seven insolvent German Esprit companies has signed a corresponding notice, the company announced.
Esprit is to have a future as a brand
Esprit is expected to continue as a brand in the foreseeable future. Products under the label will continue to be manufactured and sold in Germany - the form this will take is not yet known. Alteri, for instance, owns the fashion company CBR Fashion with the brands Street One and Cecil.
In May, Esprit Europe GmbH and six other group companies filed for insolvency in self-administration. The proceedings were opened on 1 August by the Düsseldorf District Court. Esprit Europe GmbH is the parent company for Esprit in Germany, France, Belgium, Austria, the Scandinavian countries, Poland, and the UK. Purchasing and distribution are organized in various European subsidiary and grandchild companies.
Business abroad unaffected
Esprit operates in around 40 countries worldwide. Business outside of Europe is unaffected by the insolvency. The conglomerate's parent company, Esprit Holding, is based in Hong Kong. However, Germany is the conglomerate's most important market.
In 2020, the fashion conglomerate had already applied for protective shield proceedings for several German companies. At that time, around 50 German stores were closed, and about 1,100 jobs were cut.
Trade of Esprit's brand rights in Germany has been acquired by Alteri, bringing an end to their operational business in the country. Despite this, Esprit as a brand is expected to continue in Germany, with the production and sale of products yet to be determined.
