Fashion House Esprit Declares Bankruptcy for Dutch Division

The bankruptcy filing, initially reported by RetailTrends, involves Esprit Europe, the Dutch branch responsible for the brand’s operations in the Netherlands.

Esprit also maintains a presence in a few other European countries, including Spain and Luxembourg. The company has indicated that these subsidiaries might also face bankruptcy proceedings.

Operations in the Netherlands

Esprit operates around 30 stores in the Netherlands, mostly through franchises where independent owners pay fees to use the brand. The company’s online store was still active this morning. Esprit has not yet clarified the impact of the bankruptcy on these stores.

Esprit Europe generates nearly 400 million Hong Kong dollars, equivalent to about 47 million euros, representing almost 7 percent of the company’s total revenue.

Financial Struggles

Esprit’s parent company has been struggling for some time. In May, it revealed that six of its German units had filed for suspension of payments. The Dutch bankruptcy filing may not be the end; the company has also suggested that its Belgian and French units might face similar proceedings.

Brand History

Founded in the 1960s in California by Susie and Doug Tompkins, Esprit gained popularity for its bohemian style, particularly in the 1980s. The brand expanded rapidly in the US but struggled in the 1990s following a fallout between its founders.

In 2002, Esprit came under the full ownership of a Hong Kong-listed company and eventually exited the American market. Despite various efforts to revive the brand, including a 2017 line inspired by its 70s and 80s designs, Esprit has been primarily active in Asia and Europe, with its former prominence not fully restored.