Esprit closes various stores in Switzerland
Published: Tuesday, Mar 26th 2024, 16:11
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The Swiss branch of the Esprit fashion chain has gone bankrupt. A number of stores have already closed. Instead of its own stores, the management now wants to rely more on retail or franchise partners.
According to various sources, there are between 40 and 50 Esprit stores in Switzerland. On the Esprit website, which does not yet mention the bankruptcy, the now closed stores are no longer listed.
However, not all Esprit stores are affected by the closure, but only those operated by the now bankrupt Esprit Retail Switzerland AG. It is not clear from the information currently available exactly how many stores are affected and how many employees are affected by the closures.
Blick" was the first to report on the Esprit bankruptcy on Tuesday. A communications agency based in Germany, which is responsible for Esprit's media relations in Switzerland, said in response to an inquiry that it was in contact with the company's headquarters in the USA, which would have to answer the inquiry.
Focus on trading partners
According to an official statement from Esprit on Tuesday, the bankruptcy of the Swiss subsidiary and the closure of the stores were "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".
Esprit is now "concentrating on a comprehensive reorganization and on strengthening its business with wholesale and franchise partners". In other words, instead of running its own stores, the company wants to increasingly supply other fashion retailers with its products, who will then sell the Esprit brands in their stores or open their own Esprit stores.
Le communiqué de presse précise que les vêtements Esprit continueront d'être disponibles dans 19 magasins exploités par des partenaires franchisés et dans 150 magasins de vêtements de différentes marques.
There is also a focus on "new impetus in e-commerce". The management therefore wants to maintain its presence in online retail in Switzerland.
Propriétaire à Hong Kong
Esprit Retail Switzerland AG est détenue à 100 % par Esprit Holdings Limited, un groupe de mode coté à la bourse de Hong Kong et légalement domicilié aux Bermudes.
According to the information sent to Esprit investors, the over-indebtedness of the Swiss Esprit subsidiary amounted to around CHF 12 million at the end of 2023. However, the insolvency filing of the Swiss subsidiary had no direct material impact on the Group. The Group's business and operations also remained normal.
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