Esprit closes all German stores and lays off 1,300 employees
Fashion group Esprit plans to close all 56 of its stores in Germany by the end of this year, resulting in job losses for some 1,300 workers, according to DPA. The insolvent European arm of the company is expected to sell trademark rights to British financial investor Alteri. Esprit did not disclose the purchase price of the deal. The plan is to liquidate the companies and sell off products in stores, with Alteri not taking over operations, branches or employees, according to the Frankfurter Allgemeine Zeitung.
The Esprit brand will continue to exist, with products under the Esprit brand continuing to be manufactured and sold in Germany, although the form of this sale is not yet known. Alteri owns fashion company CBR Fashion, which manages brands such as Street One and Cecil, among others.
Esprit filed for insolvency proceedings for its European holding company based in Ratingen and seven other companies at the Düsseldorf district court on 15 May. It took similar steps in March in Belgium and Switzerland. This is Esprit’s second insolvency proceeding in four years; the company first went into insolvency in 2020 during the coronavirus pandemic, which led to the closure of 100 stores and the dismissal of about a third of its staff. In May, the company was joined by restructuring experts Christian Gerloff and Christian Stoffler, who have previously restructured companies such as Escada, Gerry Weber and Adler Modemarkt.
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