The corona crisis has hit many companies hard. Esprit has therefore announced that it will close 50 percent of all branches in Germany by November 2020.
The corona crisis hit the economy hard – now the next German company has to believe in it. Esprit has announced that it will lay off around 1,100 employees in Germany and close 50 percent of the local branches.
Around 50 stores of around 100 German retail stores are expected to be closed by November 2020. The intended staff reduction is currently being negotiated with the responsible works councils. In addition, the company announced in a statement that further cuts in salaries and benefits for administrative staff are being discussed. "The implementation of the above-mentioned measures will lead to annual savings of more than 100 million euros."
The whole thing is part of a large restructuring plan. "The measures developed will make Esprit more efficient and powerful and improve productivity. Esprit will therefore be able to meet the new challenges of the future." The decision was made in the wake of the Corona pandemic, which resulted in the branches being closed for months. Shortly before, the company had applied for a protective bankruptcy.
The effects of COVID-19 have hit the fashion industry hard. This extraordinary situation was a big challenge for us, which we have mastered very well so far.
said Anders Kristiansen, CEO of the Esprit Group.
However, Esprit is positive about the future. The company would like to accelerate the strategy already adopted at the end of 2018 and now focus even more on sustainability and product quality.