With its Austrian operations now insolvent, Esprit's European branch is facing severe financial challenges. The company attributes the insolvency to significant planning issues at its headquarter. Recently, unrest was sparked at the Hong Kong headquarters due to the sale of brand rights for the Greater China region.
Espirit currently does not plan to sustain operations in Austria. This may lead to the potential loss of approximately 170 jobs for the company. The Austrian subsidiary filed for bankruptcy at the Salzburg Regional Court, affecting 173 employees (at peak times, more than 600 were employed).
Esprit still operates twelve of its own branches in Austria, and an additional 23 stores are run by franchisees under the Esprit brand name, although they are not legally affiliated with Esprit HandelsgesellschaftmbH.
According to StapfNeuhauserRechtsanwälte, representing the company, there is no feasible option to continue operations in Austria. Pending the insolvency administrator's decision, remaining stock will be liquidated quickly, shops will close, rental agreements terminated, and the company will undergo liquidation.
Esprit has been present in Austria since 1995, at its peak employing 610 people and operating 26 of its own shops alongside 60 partner stores in 2010.
