Esprit’s French subsidiary follows European collapse.
Esprit de Corp France has filed for bankruptcy and entered judicial reorganization, marking another blow for the beleaguered fashion brand. The Nanterre Commercial Court made the ruling on July 18, just two months after Esprit’s European operations in Germany declared bankruptcy on May 15.
Bankruptcies in Germany and beyond
Esprit Europe, along with six other German subsidiaries, filed for bankruptcy in May. In 2023, Esprit’s owner attempted to revitalize the brand by injecting fresh creative energy from the United States, aiming for a brand overhaul. However, these efforts have not yielded the desired results.
The company’s subsidiaries in Switzerland and Belgium also filed for bankruptcy earlier this year, in March and April, respectively.
Rising costs and legacy burdens
In May, Esprit attributed its financial troubles to escalating costs driven by inflation, rising interest rates, and soaring energy prices, compounded by the lasting impact of the COVID-19 pandemic and international conflicts. The brand also cited “legacy costs” as a significant burden, including high rents and poorly utilized store spaces.
Grim outlook despite 2022 revenue
In 2022, Esprit de Corp France reported a turnover of over €40 million, managing to break even while employing 132 people. Despite these figures, the outlook remains bleak, with a six-month observation period now in place. The brand is struggling to find international buyers, casting further doubt on its future viability.
Esprit’s French subsidiary follows European collapse.
Fashion retailer Esprit has commenced insolvency proceedings for its European holding company.
The company has received a commitment of $240 million in debtor-in-possession financing.
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