Esprit rights sold to British investor Alteri, German stores to close

The brand rights of Esprit’s European business have been sold to the British financial investor Alteri, the financial terms of which were not disclosed in a press release.

In light of the news, the company confirmed that it would be closing all of its 56 stores in Germany by the end of the year, with around 1,300 people losing their jobs, as reported by the German Press Agency.

The companies are to be wound up and products sold off in stores, according to the media platform, as the financial investor does not intend to take over the operational business, such as stores or employees.

Alteri, which owns German fashion company CBR Fashion, will continue Esprit as a brand in the near future, with products made under the label to be manufactured and sold in Germany.

Esprit Holdings Limited fell into critical condition after experiencing tough trading throughout 2023, recording billions in debt and forcing it to restructure its operations.

This led to Esprit Europe, the parent of Esprit in the UK, Germany and France, among other regions, and six other companies filing for insolvency through self-administration proceedings.

This article was updated 09/09/24 at 16:15 CEST with a comment from CBR to FashionUnited reading: "As the transaction has not yet been finalized, we ask for your understanding that we are not yet able to communicate any further information in this regard.

"We will only publish plans for the continuation of the Esprit brand at a later date, once the transaction has been completed."