For its Dutch subsidiary NLEB, Esprit Holdings Limited has filed for bankruptcy with the Amsterdam court. 6.7 per cent of Esprit Holdings Limited’s total revenue came from NLEB.
Esprit’s operations in the Netherlands, including wholesale and retail, are under the jurisdiction of NLEB. Esprit Nederland B.V., Esprit Luxembourg S.à.r.l., Esprit De Corp. (Spain), S.L. (“ESSS”), and Every Day Counts Limited (“33ED”) are all subsidiaries of the company that it also owns. According to the news release, all of these subsidiaries may face bankruptcy procedures as a result of NLEB’s filing for bankruptcy.
After filing for bankruptcy, NLEB, its subsidiaries, and the ensuing processes are no longer under the control of Esprit Holdings Limited. It was not stated if the stores in the Netherlands will stay open.
The fashion company’s long-term goal is to shut down all of its profitable retail stores in Europe to create room for a new wholesale and e-commerce-focused business strategy.
In addition to streamlining the organization’s structure, this new business plan calls for the establishment of a more adaptable and scalable European distribution centre. Six locations in the Netherlands are being considered by Esprit for the opening of a new European distribution hub. Furthermore, the business is redesigning its online store to maximise e-commerce and provide a new, economical infrastructure.
