Dutch branch of Esprit files for bankruptcy

Esprit Holdings Limited has filed for bankruptcy for its Dutch subsidiary NLEB with the Amsterdam court on 22 July, as announced in a press release. NLEB generated 6.7 percent of Esprit Holdings Limited's total revenue.

NLEB is responsible for Esprit's activities in the Netherlands, including both wholesale and retail. The firm is also a shareholder of Esprit Nederland B.V., Esprit Luxembourg S.à.r.l., Esprit De Corp. (Spain), S.L. (“ESSS”), and Every Day Counts Limited (“33ED”) (collectively, the “Subsidiaries”). The bankruptcy filing for NLEB could lead to bankruptcy proceedings for all of these subsidiaries, according to the press release.

Esprit Holdings Limited no longer has control over NLEB, its subsidiaries or the proceedings to come following the bankruptcy filing. Whether the stores in the Netherlands will remain open was not mentioned in the press release. “The Company [Esprit Holdings Limited, ed.] understands that NLEB will be liquidated after the completion of the bankruptcy proceedings and that NLEB's current business activities will be terminated.”

Dutch operations also unprofitable for Esprit

Esprit Holdings Limited found itself in a critical state after the 2023 financial year. The company reported a multi-billion euro debt, forcing it to restructure. In doing so, Esprit Holdings Limited is primarily focusing on its European operations, quickly exiting Switzerland and later filing for bankruptcy for its Belgian branch.

As a result, 15 stores closed in April, causing the loss of 148 jobs. Independent operators, around 10 in total, continue to operate under the Esprit banner. One of them, Mapina, was ultimately declared bankrupt in June.

Esprit is also struggling in Germany, where Esprit Europe GmbH and six other German affiliated companies filed for insolvency proceedings. Esprit Europe GmbH oversees Esprit's operations in Germany, France, Belgium, Austria, the Scandinavian countries, Poland and the United Kingdom.

Esprit makes way for new business model in Europe

The fashion company wants to close all loss-making retail operations in Europe in the long term and make way for a new business model that focuses on wholesale and e-commerce.

This new business model includes optimising the company's structure, but also setting up a more flexible and scalable European distribution centre. Esprit is looking at six locations in the Netherlands to open a new European distribution centre. In addition, the company is overhauling its webshop to optimise e-commerce and ensure a new cost-efficient infrastructure.