Swiss subsidiary of the Esprit clothing chain is bankrupt
Published: Tuesday, Mar 26th 2024, 14:20
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The Swiss branch of the Esprit fashion chain has gone bankrupt. A number of Esprit stores have already closed their doors.
According to the Esprit website, which does not yet mention the bankruptcy, there are over 45 Esprit stores in Switzerland. Those affected by the closure are those operated by the now bankrupt Esprit Retail Switzerland AG. It is not clear from the information currently available exactly how many are affected and how many employees are affected by the closures.
Esprit Retail Switzerland AG is wholly owned by the fashion group, which is listed on the Hong Kong stock exchange and has its legal domicile in Bermuda. According to an official statement from Esprit on Tuesday, the bankruptcy of the Swiss subsidiary and the closure of the stores was unavoidable. The reasons given for this are the general economic downturn in combination with the sharp rise in energy and logistics costs, negative consumer sentiment in Europe and long-term expensive rental contracts for "inappropriately sized stores".
According to the information sent to Esprit investors, the over-indebtedness of the Swiss Esprit subsidiary amounted to around 12 million Swiss francs at the end of 2023. According to the information, the insolvent national company will now be reorganized and focus on the online store and trading with franchise partners in the future.
In a press release sent to the Swiss media, it is pointed out that Esprit clothing will continue to be available in 19 stores operated by franchise partners as well as in clothing stores with various brands.
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