In the wake of many brands in the fashion sector, Esprit is also forced to close some of its stores and businesses in Asia, except for the joint venture with Mulsanne Group in China.
By the end of July 2020, the fashion chain will definitively close 56 units divided between Singapore, Malaysia, Taiwan, Hong Kong and Macao.
This abrupt strategy has as its objective the concentration by the brand on the European market and the reduction of significant expenses that could further weaken the brand. In the meantime, the executives have put German activities into a safeguard procedure in view of a restructuring plan that will have to be presented by the end of June 2020.
The decision to close most of the units in Asia was mainly dictated by the balance sheet for the third quarter, which saw a negative outcome in the Asia-Pacific area with a 52.2% loss from January to March 2020.
It remains to be seen what the outcome of the fourth quarter will be in a situation that remains delicate, for Esprit and for many other brands, especially in Europe.