An iconic brand that dominated the 1980s and ‘90s, Esprit has gone into administration, and is officially filing for bankruptcy in the United States. The brand joins a list of retailers like Express, The Body Shop, Ted Baker, and Rue21, who have all shuttered locations amid financial struggles. As a part of its bankruptcy process, Esprit plans to close all its American subsidiaries including Esprit US Distributions, which managed its wholesale business, and Esprit US Retail Inc, which oversaw its retail and online operations.
Esprit attributes its decisionto ‘weak business and financial conditions’ and ‘unsatisfactory operating results,’ explaining that these subsidiaries were unlikely to bring in enough revenue to cover costs and meet debts.
Earlier this year, Espirit’s headquarters in Germany also filed for bankruptcy. The brand had already exited the US market back in 2012 due to profitability issues and declared bankruptcy in 2020. However, it emerged with a renewed hope after restructuring and even attempted a comeback in the US market in 2022, starting with a pop-up store in Los Angeles. The company announced plans to set up stores in LA, New York, Miami, Vancouver, and Toronto. However, now these plans are currently on an indefinite hold.
Recognised for its distinctive ‘E; logo, Espirit has been operating since the last six decades. While the brand’s American operations are closing down, its future in the international market remains uncertain.
