In a press release, Esprit Holdings Limited stated that on 8th April, the Belgian division of fashion brand Esprit, known as Esprit Belgium Retail N.V. (BEBR), filed for bankruptcy with its parent company. A few weeks have passed since the fashion brand’s Swiss arm failed.
Only the Belgian branch will be impacted by the bankruptcy; Esprit’s activities abroad will not be directly impacted. The choice made in Belgium is a component of a larger restructuring process that Esprit Holdings Limited started after it disclosed a higher-than-expected deficit for FY ’23—from 642 million to 2.5 billion Hong Kong dollars.
Esprit stated that it was working to improve its relationships with franchise and wholesale partners and to create fresh traction in e-commerce. It stated that “BEBR’s bankruptcy and the shops’ closure are inevitable” and that the parent company’s fifteen outlets will be closing right away. Around 148 workers will consequently lose their employment.
The brand’s line will still be available at 543 multi-brand stores, while independent operators—of which there are about ten in total—will carry on with business as usual under the Esprit umbrella.
Esprit further reaffirmed that it is still exploring all restructuring alternatives and backup plans “to preserve the value of the group’s business” and that the closure in Belgium will not directly negatively affect the parent company.
