We no longer count the bankruptcies of clothing brands. After Switzerland and Belgium, this major brand could well close its stores in France.
This major brand is added to the long list of bankruptcies in the ready-to-wear sector. Internet purchases, the Covid crisis and inflation have made the sector particularly fragile recently. While brands like Camaïeu, Naf Naf, Marina and Kaporal are in compulsory liquidation or in receivership, the British Superdry closed around ten stores without warning in March 2024. Even brands dedicated to children are affected: Sergent Major, Du same to the same… And those of beauty or well-being like The Body Shop.
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In this month of April, it is a new major brand that risks closing in France, after Switzerland and now Belgium. The fashion group is in fact experiencing great financial difficulties and can no longer cope. The announcement was made in a press release, which does not specify whether France will also be worried.
A new major clothing brand in difficulty
On Tuesday March 26, 2024, the Esprit Retail Switzerland AG group announced in a press release the closure of its stores in Switzerland: “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.”.
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On April 8, 2024, insolvency proceedings were filed in a Belgian court. The clothing brand is therefore bankrupting its activities with our neighbor. In a new press release, the brand specifies that the company Esprit Belgie Retail (BEBR) is “not financially viable”.
The reasons for the bankruptcy of Esprit
Esprit is based in Germany, the United States and Hong Kong, “where it is listed” specifies the site Fashion Network. This bankruptcy is attributed to “general economic slowdown, combined with the sharp rise in energy and logistics costsnegative consumer sentiment in Europe, and excessively high rents for stores of unsuitable sizes”. This may suggest that Esprit store closures are coming in France, or even bankruptcy. A possibility therefore but no certainty for the moment.
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Which new brand will add to the list of bankruptcies in the ready-to-wear sector? Times are tough in this sector of activity, as in others given the economic situation. After the pandemic, the war in Ukraine caused gas and electricity prices to explode across Europe, impacting the margins of many companies. Second-hand goods are also attracting more and more buyers, which weakens fashion boutiques, although many of them offer a second-hand corner.
Editor for Aufeminin since 2022, Charlotte is passionate about cinema, French and international, and a fortune reader. Curious about everything, she talks as much about personalities as…