As a part of its efforts of efforts to restructure the company’s European operations, Espirit Europe GmbH and six other German subsidiaries of the fashion group filed for insolvency under self-administration.
This is the company’s second insolvency procedure in the past four years. Espirit laid off approximately one-third of its workshop during the COVID-19 pandemic besides shutting down 100 branch. In March earlier, it had also filed for bankruptcy in Belgium and Switzerland.
The insolvency is likely to direct impact around 1,500. However, the company’s business operations willl continue until further notice.
The group has revealed that a financial investor has shown interest in acquiring significant portions of Esprit's assets. Discussions regarding the acquisition of the brand rights for Europe are reportedly at an advanced stage.
