Esprit is known for modern and colorful mainstream clothing. The fashion company was founded in California in 1968 by husband and wife Susie and Doug Tompkins. Now the company is (once again) on the verge of collapse.
Esprit – or rather, seven companies in the holding (including Esprit Europe GmbH) – filed for bankruptcy in May 2024. The far-reaching consequences of the fashion company’s bankruptcy cannot yet be fully predicted. The fact is that Esprit has filed for bankruptcy for its entire European business.
This affects 1,500 Esprit employees. However, branch operations will continue to operate until further notice.
But the group cannot avoid branch closures. As the Rheinische Post has researched, around 40 branches in Germany are to close. The closures affect the fashion retailer’s franchise operator PTH Group, which has already terminated the contract and is now converting all locations – including a branch in Düsseldorf – without Esprit goods.
This development, which the franchise partner clearly supports through his decision, is a hard break for the Esprit fashion group. The PTH Group was previously responsible for the operation of numerous Esprit branches. The affected stores are now to reopen under the new name “Catches” with a new range of other brands.
The insolvency is to be handled under self-administration with the aim of restructuring and repositioning Esprit’s European business, which is managed from Germany. According to Manager Magazin, the current managing director Man Yi Yip is to resign from the companies affected by the insolvency. Discussions with a possible investor are said to have already been held.
According to tagesschau.de, the financial investor is said to have registered interest in the trademark rights for Europe and wants to continue the operational business. This is the fashion brand’s second bankruptcy in four years. Esprit had already filed for bankruptcy during the 2020 corona pandemic due to closed stores. At that time, around a third of the workforce was laid off and 100 branches were closed.