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.
The clothing retail chain Esprit has announced that it will cut about 1,650 jobs in Europe, including Germany, France, Luxembourg and the Netherlands.
In Germany, all shops across the country and the head office in Ratingen will be closed, and 1,300 jobs will be cut by the end of 2024 ESPRIT-2024-DE.
In May 2024, Esprit Europe GmbH and six other of the group's subsidiaries, operating in Germany, filed for insolvency. The conditions of the programme will be negotiated with employee representatives according to local regulations. The programme will also affect business operations in other European countries as Esprit Europe GmbH is the parent firm for Esprit in Germany, France, Belgium, Austria, the Scandinavian countries, Poland and the United Kingdom.
So far, the layoffs have been also announced in France (about 130 jobs), Luxembourg (about 20 jobs) and the Netherlands (over 200 jobs).
Additionally, the fashion chain’s branches in Belgium (148 jobs cut ESPRIT-2024-BE and Switzerland went bankrupt earlier this year.
The restructuring programme is due to high inflation costs, interest rates, energy prices as well as the aftermath of the pandemic and the impact of international conflicts.
Esprit has been operating since 1968. Esprit’s headquarters are located in Germany and Hong Kong. The group is present in about 40 countries worldwide. The group employs about 2,300 employees worldwide. In Europe, the company operates in Austria, Belgium, Luxembourg, Finland, France, Germany, Italy, Poland, Denmark, Sweden, Norway, Spain, Switzerland, the Netherlands and the UK. According to the sources, there are currently 124 stores remaining in Europe.
The company previously underwent restructuring in 2020, which led to the closure of around 50 shops and the loss of 1,100 jobs Esprit-2020-DE.
Eurofound (2024), Esprit, Bankruptcy in European Union, factsheet number 201495, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/201495.