Esprit's second bankruptcy in four years disrupts European operations
12 June 2024 11:44
In May 2024, the German brand Esprit filed for bankruptcy. The future of the Esprit fashion group remains uncertain. Recently, negotiations with the German CBR Group, which was interested in taking over, were broken off.
Esprit initiated talks with the German CBR Group, but the potential investor interrupted the negotiations – reports retaildetail.eu. The CBR Group owns such brands as Cecil and Street One.
The collapse of a known clothing chain
In May 2024, bankruptcy filings were submitted to the district court in Düsseldorf for Esprit Europe GmbH, based in Ratingen, and six other German companies. This is the second time in four years that the well-known European brand Esprit has filed for bankruptcy.
The bankruptcy proceedings affect operations in the Netherlands, France, the United Kingdom, Austria, Scandinavia, and Poland. At the beginning of this year, the fashion chain went bankrupt in Switzerland and Belgium.
The company is to undergo restructuring because it was unable to meet its financial obligations. The brand aims to shift towards a more flexible business model, with a greater emphasis on e-commerce and wholesale.
As reported by money.pl, the company's operations are to continue for the time being, but the bankruptcy proceedings will cover about 1,500 group employees in Germany.
Esprit Europe is the parent company of Esprit, which operates in the UK, Germany, France, Belgium, Austria, the Scandinavian countries, and Poland. The group, founded in 1968, operates in 40 countries worldwide, but Germany generates half its sales.
