Esprit France declares bankruptcy amidst ongoing financial struggles

By

Olivier Guyot

Translated by
Roberta HERRERA

Published
Aug 21, 2024

Following the bankruptcy of Esprit's European structure in Germany on May 15, Esprit de Corp France has also entered judicial reorganization. The Nanterre Commercial Court made its decision regarding the company based in Boulogne-Billancourt on July 18.

Esprit Europe and six other German subsidiaries had filed for bankruptcy earlier in May. In 2023, the brand's owner aimed to revitalize Esprit by injecting new creative momentum from the United States, intending to upgrade the brand. However, these ambitions have evidently not been realized.

The subsidiaries in Switzerland and Belgium, where Esprit has stores, filed for bankruptcy in March and April respectively.

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"In recent years, the subsidiaries have faced extremely high costs due to inflation, interest rates, and energy prices, compounded by the aftermath of the coronavirus and the consequences of international conflicts," Esprit stated in May. This situation was "exacerbated by the burden of legacy costs," the group continued, citing high rents and stores that were improperly sized.

Esprit de Corp France had generated a turnover of over 40 million euros in 2022, breaking even, and employed 132 people at the time. The observation period is set for six months. However, the outlook is bleak as the brand struggles to find international buyers.