Esprit turns attention to New York offices where layoffs commence

Following bankruptcy filings for its Belgian and Swiss businesses, Esprit is now said to be laying off employees at its New York offices, yet a similar restructuring is not likely to be pursued.

This was confirmed by the company’s chief executive officer, William Pak, who told WWD that while the restructuring strategy and Switzerland and Belgium had been “in motion for quite some time”, there were “no plans for the North American business to file for bankruptcy”.

Pak continued: “I’ve communicated to the market over the last couple of years that the EU problem has been an issue for Esprit for over a decade, and we are finally able to address the issue through the restructuring so that Esprit can return to its original traits of having good design, quality and fit that the customer has been longing for in the US.”

In a separate statement issued to the media outlet, the “repositioning” in the US was said to be “focused on reengaging with the brand’s American heritage and amplifying the foundations on which it was originally established”.

A new management team, which had been established in 2022 alongside the appointment of Pak as CEO, is believed to have “already begun the necessary strategic restructuring, rebranding and repositioning of Esprit and is now set to accelerate on this path”.

As such, the New York office has become a target for layoffs, the number of which was not disclosed, as the company looks to “right-size” its operations.

While redundancies appear to be imminent in the US, Esprit did note that it would continue to open “strategic” retail destinations in the region, while further improving its e-commerce system.