Esprit closes - all branches in Germany close
Fashion conglomerate Esprit disappears from the German streetscape. All branches in Germany will be closed by the end of the year, leaving 1300 employees jobless.
Fashion conglomerate Esprit will close all 56 branches in Germany by the end of the year, leaving approximately 1300 employees jobless. The brand rights for the insolvent European business are to be sold to the British financial investor Alteri.
In early August, the District Court of Düsseldorf opened the insolvency proceedings in self-administration for the Esprit Europe GmbH based in Ratingen and six other German group companies of the fashion conglomerate. Negotiations with the works councils on social plans and interest compensation are being conducted, and the payment of salaries is secured until insolvency-related dismissals take effect, the company announced. In May, Esprit filed for insolvency for its European business due to payment incapacity and over-indebtedness.
Esprit is active in around 40 countries worldwide and has its headquarters in Ratingen and Hong Kong. Germany is the most important market for the corporation. The fashion conglomerate had already filed for protective shield proceedings for several German companies in 2020, leading to the closure of around 50 branches in Germany and the elimination of approximately 1100 jobs.
The closure of Esprit's branches in Germany will likely affect the spirit of fashion enthusiasts who patronized the stores. Despite the difficult financial situation, Esprit continues to negotiate with works councils and secure salary payments until insolvency-related dismissals.
