The aim of the insolvency proceedings is clear: Esprit should be restructured in Europe and placed on a sustainable, profitable basis. But the difficulties are immense, as the financial situation of the 57 German branches makes clear. A former board member paints a picture of branches that have been “highly loss-making for years” – the large location in Düsseldorf is not exempt from this.
However, the new management is keeping the doors of the stores open “until further notice” and is negotiating with Alteri Investors about a concept for Esprit’s future. The British company, known for retail investments and already owner of the CBR Fashion Group, could take over Esprit’s European business. The final negotiations should lead to a decision soon, while the insolvency money will secure the employees’ wages for a few more months.
So while some of the workforce is hoping for a second miracle, the company’s management is preparing to possibly only secure the profitable sale of goods through third-party retailers. It remains to be seen whether and how Esprit can find its way out of this crisis.