Following the bankruptcy of Esprit's European operations in Germany on May 15, Boulogne-Billancourt-based Esprit de Corp France has also entered into administration. This decision was announced by the Nanterre Commercial Court on July 18,
Esprit Europe and six other German subsidiaries filed for bankruptcy in May this year. The brand’s owner attempted to revitalise Esprit in 2023 by infusing new creative energy from the United States, with the goal to upgrade the brand’s image. However, these efforts fell short.
The brand’s subsidiaries in Switzerland and Belgium, where it operates stores, had already filed for bankruptcy in March and April, respectively.
Esprit cited multiple challenges contributing to its financial difficulties, including high costs driven by inflation, rising interest rates, and increased energy prices, along with the lingering effects of the coronavirus pandemic and the impact of international conflicts. These challenges were further compounded by legacy costs like high rents and poorly sized stores, explains the company.
In 2022, Esprit de Corp France generated a turnover exceeding €40 million and managed to break even, employing 132 people at the time. The company has been granted a six-month observation period, but the outlook remains uncertain as the brand struggles to attract international buyers.
