Another Iconic Fashion Chain Files Bankruptcy, Fate Of 586 Stores Unknown

Plenty of retailers are coming to terms with the fact that customers just aren't going to stores as much as they used to, and it is taking a heavy toll. Chains like The Body Shop, Express, Ted Baker and Rue21 have all had to declare bankruptcy and close stores, and now, another iconic fashion brand is doing the same. Esprit has filed for bankruptcy in Germany, where their headquarters are located.

It's not the first time the company, best known for their logo of an E made with three bars, has hit troubled waters in their nearly 60-year history. Back in 2012, they decided to shutter all of their North American stores since they weren't profiting. Then, as with many other companies, the pandemic hit hard and in 2020, Esprit filed for bankruptcy the first time. However, they were able to restructure financially and come out of it.

Things were looking up for the brand, especially in 2022 when they came back to North America, starting with a pop-up store in LA. They had plans to open permanent stores in Los Angeles, New York, Miami, Vancouver and Toronto, but it seems that will no longer be happening. Their filing for bankruptcy follows massive losses in 2023 amounting to $286 million.

As yet, there is no word on what will happen to the company's remaining 586 stores worldwide. They've said a financial investor is interested in some of their assets and they are currently in negotiations. Hopefully there will be a positive outcome since they have 1,500 employees who would be significantly impacted if a deal can't be made.