Apparel retailer Esprit announced Sunday the insolvency plans it developed for its six German subsidiaries have been approved by creditors and confirmed by the Dusseldorf court.
The process allows “a complete restart for the group” enabled by substantial debt forgiveness for the six German subsidiaries. The company said that after the final and official conclusion of the proceedings, expected by the end of the month, Esprit “will go back to normal operations”.
On 27 March 2020, the German company applied for Protective Shield Proceedings for its German subsidiaries after taking a hit from Covid-19 and temporary store closures in Europe and Asia.
Esprit Group CEO Anders Kristiansen said in a statement: “The successful results show that we have taken the right step. My management team and I have faced the challenges imposed by the pandemic and subsequent economic slowdown. We quickly developed a strong restructuring plan and are now close to finalizing it. The first results delivered by our streamlined and fit organization are very promising: Esprit is now in a strong position and ready for the future.”
The retailer said its management will now continue to focus on key strategic initiatives, such as “strengthening the position of Esprit as an affordable premium lifestyle brand, unconditioned customer centricity, and further improvements in product quality and sustainability”.
Photo credit: Esprit, Facebook