Application for insolvency

1500 jobs are in jeopardy at the Esprit fashion chain

The Esprit fashion chain is in financial turmoil.

(Bild: AFP)

On Wednesday, the fashion chain Esprit filed for insolvency in self-administration for its European holding company based in Germany and six other companies. Esprit Europe GmbH is the parent company for Esprit in Germany, France, Belgium, Austria, the Scandinavian countries, Poland, Great Britain and Austria, where around 200 people are employed in 17 branches.

"The aim is to restructure Esprit's European business, which is mainly managed from Germany, and to reposition it for the future," the company announced. Talks are already underway with a financial investor who has expressed interest in the brand rights for Europe and wants to continue the operational business. Esprit had already filed for insolvency in Belgium and Switzerland in March.

Fashion chain hit hard by the pandemic
It is the second insolvency proceedings for Esprit in four years. During the 2020 coronavirus pandemic, the fashion chain had already taken refuge under the protective umbrella of insolvency law in the face of closed stores, laid off around a third of its workforce and closed 100 stores. 1,500 employees still work in the companies affected by the recent insolvency.

Business operations continue for the time being
Business operations are to continue "until further notice". The parent company Esprit Holdings is listed on the Hong Kong stock exchange, but the focus of the business is in Europe. Germany alone recently accounted for more than half of sales.

Esprit is a globally renowned brand for mainstream fashion, but has been suffering from falling sales for some time, combined with numerous restructurings and management changes.

Insolvenzexperte Christian Gerloff

Esprit has brought on board the insolvency experts Christian Gerloff and Christian Stoffler, who have made a name for themselves in the fashion industry (Escada, Gerry Weber, Adler Modemärkte), as restructurers.