Another fashion chain topples: Esprit files for bankruptcy of Dutch branch
The Netherlands-based European division of fashion chain Esprit is on the verge of collapse. The American parent company filed for bankruptcy for the European subsidiary in the court of Amsterdam, it said in a press release on Tuesday.
In the Netherlands, about 30 stores still sell Esprit clothing, including Esprit stores and other clothing stores. It is unclear whether Esprit stores are open today. The Dutch web shop was still active. Esprit also has stores in Spain, France, Belgium, and Luxembourg, according to NOS.
A bankruptcy administrator will be appointed to investigate possible solutions for the chain, such as a buyer or a restart. If no solution can be found, the European stores will close.
According to the parent company, the European Espirit branches have seen revenues decline in recent years and “do not have sufficient funds to continue its business activities.” Given “all the challenges” the subsidiary faces, the parent company considers bankruptcy “appropriate and in the interest” of the group.
Esprit is not the first fashion chain to stumble in the Netherlands this summer. The Dutch fashion house AARC Holding, which operates the stores of iconic British fashion brand Ted Baker in the United Kingdom and mainland Europe, was granted a deferral of payment—typically a precursor to bankruptcy—last month. Scotch & Soda was declared bankrupt in June.
