Esprit Holdings Limited, the Hong Kong-based parent company of the fashion chain, has announced the bankruptcy of its European division. This move follows a series of financial struggles for the company, which has seen its coffers dwindle in recent years. The bankruptcy filing was made in an Amsterdam court and will affect stores in the Netherlands, Spain, France, Belgium, and Luxembourg.
The bankruptcy comes after a strategic shift by the company, which has decided to focus on its Asian markets and online sales. Franchisees, like Ivon Reinders, who operates two Esprit stores in the Netherlands, have expressed disappointment over the decision, blaming management for making "wrong strategic choices" that led to the current situation.
Founded in California in 1968 and later listed on the Hong Kong stock exchange, Esprit's downfall highlights the challenges faced by traditional brick-and-mortar retailers in an increasingly competitive and digital-driven market.
