Esprit closes fifteen stores in Belgium, including six in Brussels

The clothing chain Esprit filed for bankruptcy in Belgium on Monday, as part of a “vast restructuring”, according to a press release from the parent company on the Hong Kong stock exchange.

■ Report by C. Verbruggen, C. Carpreau and P. Bourrières

“The global economic slowdown, combined with a sharp rise in energy and logistics costs, a sluggish consumer climate in Europe and high rents for oversized stores, ultimately made it impossible to continue operations in their current structure in Belgium”, indicates the press release. “The bankruptcy of BEBR (Esprit Belgie Retail NV, Editor’s note) and the closure of its stores were inevitable.”

The socialist union Setca had already announced Monday evening the closure of the fifteen directly managed Esprit stores, resulting in the loss of 148 jobs. However, points of sale operated by independents will be able to continue their activity.

Esprit now intends to focus on “a major reorganization, by strengthening its partnerships with wholesalers and franchisees, as well as giving new impetus to its online business”. This restructuring comes after the brand had already announced its bankruptcy in Switzerland last month.

“It’s always a shock”

Faced with this announcement, workers are disappointed, despite warning signs which foreshadowed management’s decision, assured Tuesday the permanent secretary of SETCa, Christophe Bouvier. “When it happens, it’s always a shock. We expected it, but we hoped for the opposite,” he says. The union representative specifies that no union action is planned to date, given that no negotiations are possible.

“Management justifies this decision by the global economic context with the success of online stores like Zalando, Shein, Temu but also the increase in the cost of energy,” says Mr. Bouvier. “When we see that in certain galleries, the rents are around 200,000 euros per month, we should not be surprised either,” he further noted.