The corporate court in Antwerp declared the bankruptcy of Esprit België Retail NV on Tuesday. Although Esprit used to be a popular clothing brand, the rise of e-commerce has affected the chain, says Inge De Beul of the socialist trade union BBTK. “Since the corona crisis, people have been buying online much more often, which means there are far fewer customers in physical stores. In addition, expenses and rents have risen enormously, especially in Brussels. I fear that other companies will certainly follow suit.”
Between 25 and 30 employees in Brussels will lose their jobs. The two franchised stores and those in the Galeria Inno branches will remain open.
A total of fifteen stores must close across Belgium. This concerns Esprit stores in Antwerp, Bruges, Ghent, Hasselt, Knokke, Leuven and Wijnegem. Furthermore, six stores in Wallonia will be closed: two in Liège, and in Mons, Tournai, Louvain-la-Neuve and Nivelles. According to the union, a total of 148 jobs will be lost.
Inevitable closure
“The filing of the bankruptcy application for Esprit Belgium Retail NV and the closure of the stores of Esprit Belgium Retail NV were inevitable,” the management repeats in a press release that the parent group had already written in a notification to the Hong Kong stock exchange. “The overall economic development in combination with the sharp increase in energy and logistics costs, negative consumer confidence and, last but not leastthe high rental prices of the past for shops with inappropriate surface area, ultimately made it impossible to continue the business.”
After an “extensive reorganization”, Esprit wants to work more intensively with franchise and wholesale partners “to further raise the profile of the brand and the collections.” This should make the brand more attractive and credible and allow it to reach new target groups. The online offering will be improved, it says.
