In a recent statement, global retailer specializing in clothing, accessories, footwear, home goods and more Esprit Holdings announced that it has filed for bankruptcy protection for two of its subsidiaries in the United States following financial difficulties and declines in its operations.
The company specified that the decision involves Esprit US Distributions Limited (USDS) and Esprit US Retail Inc. (USRI) since after an evaluation the combined assets of the two subsidiaries totaling approximately $40 million were not sufficient to cover high operating costs and balance their finances, opting as a last resort to declare bankruptcy.
However, after filing for bankruptcy in the Southern District of New York Bankruptcy Court under Chapter 7 on October 25, the company agreed to liquidate the assets of both subsidiaries to settle its debts with creditors.
Esprit Holdings has already announced its next step, which is to opt for a “light asset” plan in the coming years, meaning that it will focus on collaborations and licenses with more strategic partners for the brand, with the main objective of growing in the market without having to pay high costs.
This will be a significant change for the company and its customers. For now, it indicated that everything related to the bankruptcy process of its subsidiaries will be reported to its investors, as well as the novel restructuring and approach that the business is adopting.
This is how Esprit Holdings was born
In the early 90s, long before Eco Fashion became fashionable, Esprit launched its first ecollection made from 100% organic cotton where the modelling was done by Esprit employees themselves in honour of its Real People campaign.
Susie and Doug were completely dedicated to the ideals of the flower power generation: Peace, Love and Harmony! And they wanted to transfer this not only to the brand, but also to their behavior as a company. Esprit was one of the first companies to emphasize responsibility for its employees, social concerns and environmental issues.
Some more recent facts
In 2010, Esprit began an incredible collaboration with Gostwyck Farm (Australia). The wool obtained from the sheep on this farm is one of the best in the world, but it also guarantees the welfare of the animals.
2019
In 2019, they teamed up with designers Craig & Karl on a campaign that aimed to raise awareness about diversity issues and equal rights for LGBTQ+ people, participating in the pride movement, and contributing to positive change in society.
On March 8 of that year, they launched the We All campaign with the German National Committee for Women of the United Nations. Esprit invited everyone to buy the We All T-shirt, the full price of which would be donated to the Committee, raising €85,000.
The brand and its renowned program called Esprit Cares
The brand created a well-known program called Esprit Cares, with the mission of giving its employees the opportunity to become volunteers through social actions and charitable causes. They also organize activities around the world and take actions that create real differences, with the goal of being an agent of good. With the Esprit Cares program, they created:
Esprit Voices
The creation of Esprit Voices was based on a series of speeches to inspire, raise awareness and enrich on business, personal and social issues. Some of the topics that have stood out most in Esprit Voices have been Transgender Rights, Unconscious Bias and Refugee Stories.
Charity Day
Charity Day: Charity Day was designed to allow Esprit employees to take time off work to volunteer at a local charity. The idea was that employees could choose the action they wanted to support, allowing them to get involved in something they care about personally.
The Yes Center
The Yes Center: With the You Foundation (an organization supported by the United Nations), it was created so that Esprit could sponsor 1 million euros to educational centers in countries where its suppliers would be located: Bangladesh, Pakistan, India and Vietnam. The aim was to provide vocational training and education to empower students to achieve their dreams.
