The popular fashion brand filed for bankruptcy

By: Trademagazin Date: 2024. 05. 16. 11:30

The German clothing brand Esprit announced on Wednesday that it will be subject to bankruptcy proceedings, which were initiated at the Düsseldorf court. According to the announcement, about 1,500 employees will be affected by the decision, which aims to reorganize the company’s European operations, with its current headquarters in Germany. Bild reports that the company is already in talks with a potential investor to save the company.

Esprit has been struggling financially for years. The brand has already gone through insolvency proceedings in 2020, when a third of its employees were laid off and a hundred stores were closed. However, these measures did not bring the expected results, so now bankruptcy proceedings have taken place again.

There was also a change in the management of the company; Managing director Man Yi Yip has left, and his place will be taken by insolvency lawyers Christian Gerloff and Christian Stoffler, who are trying to stabilize the company’s situation at the head of a new management team.

Esprit is currently present in 40 countries and operates 124 stores in Europe, 57 of which are located in Germany, which is a strategically important market for the company. Bringing in new management and potential investors could be key to the brand’s future.