Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Esprit, an Hong-Kong based multinational clothes retailer has announced it will be closing its own stores across Belgium. In total 15 stores will be closing leading to 148 employees at risk of losing their job. The stores that work in franchise are not affected by the closures and will remain open (10 in total).
The company management states that the global market has created competition to the extent that it is no longer viable to keep the stores open. Another reason that was given are the rising energy costs, these leads to excessive costs for the company.
Update 19/08/2024: In August news came out that Esprit's European operations are ending after a failed takeover, with about 1,300 jobs lost. Two potential buyers are interested only in the brand rights, considering a limited continuation of the business. Esprit's European headquarters has entered insolvency, and most of its 124 remaining stores are likely to close.
Eurofound (2024), Esprit, Bankruptcy in Belgium, factsheet number 201077, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/201077.