The German clothing giant has been struggling for some time now. In May, we wrote that bankruptcy applications had been filed with the district court in Düsseldorf by Esprit Europe GmbH, headquartered in Ratingen, and six other German companies.
Shortly after, Esprit Group companies filed for bankruptcy one after another. In Switzerland and Belgium, the fashion chain went bankrupt earlier this year. Now, its European arm has also begun bankruptcy proceedings.
Esprit was forced to start bankruptcy proceedings – the company had recently been looking for an investor, but had been unsuccessful. As restructuring manager Christian Gerloff told ZDF, there was no one willing to take the risk of getting the business back on track. As he said, “his goal has always been to save as many jobs as possible.”
The talks were held, among others, with CBR Group, which was supposed to change the fate of Esprit. The group is known for brands such as Cecil and Street One. However, as reported by industry media, the potential investor interrupted the negotiations, which is why Esprit in Europe still cannot be sure of its future.
Currently – as reported by the portal dlahandlu.pl – talks are to be held with two potential candidates. However, the offers concern only the acquisition of rights to the brand. One of the companies is indeed interested in resuming operations, but on a much smaller scale. The other, on the other hand, would like to do so only at a later date.
Despite the company’s efforts, according to the website, over 1,300 people will lose their jobs.
Esprit’s problems have been dragging on for several years now. This is best demonstrated by the fact that this is the chain’s second bankruptcy in four years. The pandemic, the outbreak of war, rising operating costs, including high energy costs, meant that the company was unable to meet its financial obligations. It was decided to restructure and switch to a more flexible business model focused on e-commerce and wholesale.
The company then laid off about a third of its employees and closed 100 branches.
Esprit is a clothing chain that sells women’s, men’s and children’s clothing, as well as footwear, watches and accessories. It has boutiques in over 30 countries in Europe, Asia and America. In Europe alone, it has 160 retail stores and about 400 franchise stores. Several salons are also located in the largest cities in Poland.
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