Esprit: New business model in Europe with a focus on wholesale and e-commerce

Esprit has given an update on the company's current situation in Europe. Several branches of the company have opened insolvency proceedings and an investor has not yet been found. However, several talks with potential investors are ongoing and Esprit reveals which direction it wants to take in Europe.

Esprit Holdings Limited said in a statement that it wants to close all loss-making retail operations in Europe over time. A new business model revolving around wholesale and e-commerce is to be established in the region, according to the update. Part of this new business model includes optimising the company's structure, as well as setting up a more flexible and scalable European distribution centre.

Esprit Holdings Limited noted it is currently already looking at six locations within the Netherlands for a new European distribution centre. To optimise the e-commerce channel, it is currently working on a new, cost-efficient infrastructure for its web shop.

Esprit also indicated that the Swiss and Belgian branches, which opened insolvency proceedings in March and April, will most likely be closed and operations ceased. At the German subsidiary, there is still a chance that assets will be taken over and operational activities will continue. Meanwhile, the Danish branch filed for insolvency proceedings at the last minute at the end of May.

Recently, numerous reports made it seem that the whole of Esprit was going under. However, the company stressed that the brand rights lie with another PLC and that it still has subsidiaries in North America, Asia and in Europe specifically in Spain, Italy, Luxembourg and the Netherlands.

Esprit Holdings Limited reported earlier this year that it is in talks with several interested parties to continue its European operations, however, the company has now indicated that a possible investment will be used to continue paying suppliers so that the production chain does not come to a halt and affect wholesale as a result. Investment will also be made in Esprit's new operational infrastructure.

This article originally appeared on FashionUnited.NL. Translation and edit by: Rachel Douglass.