Esprit has filed for bankruptcy protection for its U.S. subsidiaries, Esprit US Distributions Ltd. (USDS) and Esprit US Retail Inc. (USRI), according to Fashion United. The move follows Esprit’s bankruptcy filings for its European businesses in May 2024, for the second time in four years, citing “extremely high costs due to inflation, interest rates and energy prices, the after-effects of the coronavirus pandemic and the consequences of international conflicts.”
USDS is responsible for the brand’s wholesale business in the U.S., while USRI manages its physical and ecommerce retail. Liabilities for the two companies total $477 million (Hong Kong), approximately $61.4 million (U.S.).
Esprit had announced in June 2024 that it would hand over business operations to partner companies and concentrate on managing its IP and licensing business.
During the current bankruptcy proceedings, the parent company intends to work with “capable and experienced partners to expand its less capital-intensive licensing model,” according to Fashion United citing a company statement. The retailer had generated the bulk of its sales in Europe, so the U.S. business has been only of minor economic importance.
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