Esprit’s European branch is struggling to survive, and the fashion chain is now also insolvent in Austria. The insolvency is attributed to serious planning issues at the company’s headquarters, as reported by the Austrian newspaper Standard. Recently, the sale of brand rights for the Greater China region caused unrest at the company headquarters in Hong Kong.
There are currently no plans to continue the company’s operations in Austria, which would result in the loss of around 170 jobs. The Austrian subsidiary filed for bankruptcy at the Salzburg Regional Court on Thursday. According to Stapf Neuhauser Rechtsanwälte, who represent the company, 173 employees are affected. At peak times, this involves more than 600 people.
The company still operates twelve branches of its own. Additionally, thirteen franchisees use the brand name and operate 23 other stores, though they are not legally affiliated with Esprit Handelsgesellschaft m.b.H.
Based on current information, there is no possibility of continuing operations in Austria. If the appointed insolvency administrator follows the management’s request, the remaining stock will be sold off quickly, the shops will be closed, rental agreements will be canceled, and the company will be liquidated.
Esprit has been operating in Austria since 1995. In 2010, the company employed 610 people in the country and operated 26 of its own shops along with 60 partner stores.
