2024-08-03 11:23:41
Two bidders are interested in the fashion group’s European business. A decision is imminent. It is possible that operations will only continue on a reduced scale.
The Düsseldorf District Court has opened insolvency proceedings under self-administration for Esprit Europe GmbH, based in Ratingen, and six other German group companies of the fashion group. This was stated in a court announcement on the portal insolvenzbekanntmachungen.de. Lucas Flöther was appointed as the administrator.
The company also sent out a press release. The approximately 1,300 affected employees had been informed. Negotiations were being held with the works councils on social plans and reconciliation of interests, and the payment of salaries was guaranteed until dismissals under insolvency law took effect.
Due to insolvency and excessive indebtedness, Esprit filed for bankruptcy for its European business in May. The management of Esprit Europe GmbH recently negotiated with potential investors. A decision is therefore imminent. After the approval of the creditors’ committees and the administrator, binding talks with two bidders are to be held in the coming days.
Both offers concern the acquisition of the European trademark rights held by Hong Kong-based Esprit Holding. In order to be able to offer the rights in a legally secure manner, an agreement has already been concluded with the company’s headquarters, it is said.
One of the bidders’ concepts envisages the relaunch of Esprit at a later date, the other a continuation of operations on a significantly reduced scale. Depending on the outcome of the talks, the management will be forced to shut down the operational activities in the German Esprit companies completely or in large parts in the coming months, it continues.
“Unfortunately, however, we have to say that all interested parties are not prepared to take this entrepreneurial risk, or are only prepared to a very limited extent, in the still very tense market environment for the fashion trade,” said restructuring manager Christian Gerloff. The aim is always to preserve as many jobs as possible.
Esprit is active in around 40 countries worldwide and has its headquarters in Ratingen and Hong Kong. Germany is the most important market for the group. According to company information, there are 57 branches nationwide and 124 in Europe. Esprit Europe GmbH is the parent company for Esprit in Germany, France, Belgium, Austria, the Scandinavian countries, Poland and Great Britain. Purchasing and sales are organized in various European subsidiaries and sub-subsidiaries.
The fashion group Esprit had already applied for protective shield proceedings for several German companies in 2020. At that time, around 50 branches in Germany were closed and around 1,100 jobs were cut.