Esprit's Austrian subsidiary, Esprit Handelsgesellschaft m.b.H., has filed for insolvency with the relevant court in Salzburg, the creditors' protection association Alpenländischer Kreditorenverband (AKV Europa) announced on Wednesday. The proceedings will impact 12 own stores and around 170 employees. In addition to direct sales, Esprit also supplies 23 franchise partners in Austria.

The announcement follows the insolvency application filed by the parent company Esprit Europe GmbH headquartered in Ratingen in May. The entire business operations of the Austrian subsidiary, including logistics, facility management, collection management and planning, and store support, were managed from the German headquarters until recently. These departments are also affected by the insolvency of Esprit Europe.

End for Esprit in Austria

According to the application, it was unclear for Esprit Austria how the future delivery of goods and logistical support would take place during the proceedings. There was also no longer any financial support from the parent company at this time. The company cites the negative economic developments in the spring as further reasons for the insolvency.

Due to the insolvency of the Esprit Group in Germany, a continuation of the business and restructuring is not possible based on the current information, according to the insolvency application, said AKV Europa.

This article was originally published on FashionUnited DE.