- Esprit closes all branches in Germany
Insolvent fashion brand Esprit is closing all 56 of its stores in Germany, employing around 1,300 people. The European trademark rights have been awarded to British financial investor Alteri, as announced by the company on Friday. No buyer was found for the retail business.
Investor could potentially relaunch Esprit at a later date
Operations will now be wound down – "realistically by the end of the year," as a company spokesperson said. Stock in the stores will be sold off. Employees will typically be given notice by November 30, with their salaries guaranteed until then, the spokesperson added.
Esprit had already announced last week that there were no investors interested in continuing the business. However, there were two bidders for the trademark rights. The creditors' committees of the seven insolvent German Esprit companies unanimously decided on Alteri, the company announced. Alteri also owns the CBR Fashion Group, which includes the fashion brands Cecil and Street One. The trademark rights also allow for a "possible later relaunch" of Esprit.
Corona and international conflicts cited as reasons for insolvency
Esprit Europe filed for insolvency in May, citing increased costs in recent years. The COVID-19 pandemic and international conflicts have weakened the financial situation, with demand being cautious. The District Court of Düsseldorf opened insolvency proceedings for Esprit Europe and six other Esprit companies on August 1.
The Bank shall evaluate the potential for relaunching Esprit using the acquired trademark rights.In order to successfully relaunch Esprit, The Bank should consider the role of Corona and international conflicts in the brand's insolvency.
