This large bankrupt ready-to-wear brand is closing all its stores in Switzerland, with France soon to be affected?

The massacre continues among ready-to-wear brands in Europe, but also in France. After the bankruptcy of Camaïeu, the placement in liquidation or recovery of brands such as Gap, San Marina, Kaporal, Naf Naf and Superdry, we learned of the bankruptcy of the Ted Baker brand in the United Kingdom. It is also not the only one, on March 14, the Société Générale pour l’Enfant which owns brands such as Sergent Major or Du alike au same was placed in receivership.

A situation which echoes the unprecedented crisis that the world of clothing has been going through for several months. Between the Covid-19 crisis, the decline in purchasing power and the fall in sales of ready-to-wear stores in France, but also in Europe, brands in the sector are having to face very serious financial difficulties. And it’s a new brand that has announced its bankruptcy in Switzerland: the fashion group Esprit.

Closure of stores in Switzerland

It was through a press release issued this Tuesday March 26, 2024 that the fashion group Esprit Retail Switzerland AG announced the closure of its stores in the country: “The overall economic development, combined with a significant increase in energy and logistics costs as well as a negative consumer climate, not to mention the high rents of our stores, ultimately made it impossible to continue our activities.» they write.

A decision which then led to the opening of insolvency proceedings before the Swiss court for the company Esprit Retail Switzerland belonging to the Esprit Holdings group listed on the Hong Kong stock exchange as well as the closure of all of its stores in clean in the country. If at the moment we do not have information on the number of stores as well as the employees affected by this decision which they describe as “of inevitable», is that the brand did not wish to respond to requests for details from the press.

A reorganization of its activities

Still according to the brand’s press release, the company wishes to carry out a complete reorganization of its activities and henceforth concentrate on its commercial partnerships with its wholesalers and franchisees as well as on its e-commerce activity. There are therefore still 19 franchised stores that exist in Switzerland. Esprit brand clothing will also be sold in nearly 150 multi-brand stores as well as on e-commerce platforms.

A decision which takes effect following the alert from the parent company last February which indicated a loss of more than 1.9 billion Hong Kong dollars. In Germany, the brand has also requested that several of its subsidiaries be placed in safeguard procedure. A context which seems to affect more and more European countries and which could very soon extend to France.

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