As a part of its ongoing comprehensive reogranisation of the company’s operations, Hong Kong-based Esprit Holdings has filed for insolvency of its Belgium subsidiary, Esprit Belgie Retail (BEBR).
A wholly-owned subsidiary primarily involved in retailing apparel and accessories, BEBR filed for the insolvency in a Belgian court, resulting in the closure of all its stores.
The company attributed its decision to various challenges including economic slowdown, significant increases in energy and logistics costs, negative consumer sentiment in Europe, and the burden of high legacy rents. As of December 31, 2022, BEBR reported total assets of HK$88.9 million (US$11.3 million) and total liabilities of HK$80 million (US$10.2 million).
To deal with these challenges, Esprit aims to partner with wholesale and franchise entities besides revitalising its e-commerce initiatives. The company reported a net loss of $300 million for FY23, accompanied by a 16 per cent decrease in revenue. However, it is actively strategising to navigate these challenges and position itself for future growth.
