Hong Kong-listed group, Esprit Holdings has filed for insolvency ‘under self-administration’ for seven subsidiaries in Düsseldorf, Germany. The affected businesses include Esprit Europe GmbH and six other German subsidiaries. The reasons cited for bankruptcy include high rent, labor and energy costs, the after-effects of the coronavirus pandemic, and international conflicts as reasons for financial unviability in Germany.
Esprit operates in over 40 countries with headquarters in Germany and Hong Kong. The insolvency may impact other European businesses, as some affected German entities are shareholders in Esprit companies in France, the UK, and Poland. Esprit has already filed for bankruptcy in Belgium and Switzerland in March.
No shop closures have been announced yet, but 1,500 jobs are at risk. Subsidiary management is working on restructuring plans, and the group is seeking new funding opportunities. Potential investors are interested in strategic partnerships, with Reuters noting an advanced-stage discussion for acquiring Esprit's European brand rights.
