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Big boom in the fashion industry: Esprit is closing its 23 branches in Switzerland. Employees were informed about this in a very short time. According to information obtained by a reporter, the branch management was instructed to confiscate all the keys of the employees.
The closure shocked the industry. “It’s a shock,” says Jörg Weber, 68, founder of the successful Swiss fashion chain Chicorée. “The Esprit brand has been a role model for many in the industry for decades.”
There was a big surprise in Zurich Bahnhofstrasse on Tuesday morning. There is a note stuck to the window of the Esprit branch: “We are temporarily closed.” So: We are temporarily closed. However, it is becoming clearer day by day that the 23 branches will never open again.
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Customers on Bahnhofstrasse are very surprised by the closure, but they do not believe that the closure will only be temporary. Her suspicion: Today most people shop for clothes online, but very few people go to stores anymore.
Weber’s end was near, especially since Esprit had been struggling with problems in Germany for some time. “The brand had long been considered outdated and was no longer attracting customers.” In addition, Esprit was also in a bad position in terms of price: “Mid-price ranges are under great pressure, but cheap and high-priced brands are still working,” said the founder of low-price chain Chicorée.
Esprit Switzerland went bankrupt
The closure approval came from Hong Kong, where the parent company is listed: According to the statement made by the Hong Kong stock exchange, Esprit Switzerland Retail AG (ESRA) filed for bankruptcy in Switzerland.
In the statement, the company explained that the bankruptcy and associated branch closures were “inevitable” and were caused by a combination of the economic downturn, sharp increases in energy and logistics costs, negative consumer confidence in Europe and “high rents for disproportionately large branches”. “.
Franchise stores will remain open
Esprit Switzerland Retail AG has a total of 23 branches. These are closed immediately. Approximately 150 employees were affected by the closure.
However, 19 stores belonging to Esprit Wholesale Group will remain open. This is an association of independent entrepreneurs who sell Esprit brand clothing as a franchisee. The Esprit brand is also present in approximately 150 department stores in Switzerland.
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
