The German Companies of the Fashion Group Esprit Face Insolvency

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Esprit has been in crisis for a long time. Now the German companies want to restructure themselves through self-administration insolvency. 

As the company announced, Esprit Europe GmbH will file an application for insolvency under self-administration at the Düsseldorf District Court this Wednesday. Corresponding insolvency applications were also submitted for six other German companies of the fashion group. The aim is to restructure and reposition the group’s European business, largely managed from Germany.

As Reuters reports, this is the second insolvency procedure within four years for Esprit, which had laid off around a third of its workforce and closed 100 branches during the COVID-19 pandemic.

The company had already filed for bankruptcy in Belgium and Switzerland in March. It also announced closing 40 stores in Germany not long after.

According to the information from Reuters, around 1.500 employees would be directly affected by the insolvency.