Esprit wipes out millions in losses through restructuring

Esprit Holdings Limited has managed to reduce its loss from 714 million Hong Kong dollars to 95 million Hong Kong dollars, the company announced citing preliminary figures.

The reason for the reduction can be found in the restructuring and deconsolidation of the European subsidiaries, as read in the statement. In recent months, various subsidiaries of Esprit went bankrupt and a financier was sought for the European branch. It recently emerged that the license for the European branch is being sold to investor Alteri. Alteri in turn is the parent company of the CBR Group and associated brands Street One and Cecil.

Esprit Holdings Limited does indicate that the "benefit" of the restructuring is a one-off. Such a large reduction in losses based on these steps is therefore not expected to be repeated. The company emphasises that these are preliminary figures. A final audit has yet to be carried out, after which the results for the first half of 2024 will be published. This is expected to be at the end of August and will also include other key financial figures.