Wrong colors, wrong cuts, wrong strategy: The Esprit fashion company is in crisis.
Now, under the leadership of Anders Kristiansen, a reorganization program for the company has been redesigned. The plan is to shut down unprofitable stores and streamline the organization, as the company announced on Monday in Hong Kong. The plans are to reduce the number of employees out of trade by around 40 per cent. The company did not provide information on possible cuts in Germany.
Esprit employs about 2,800 full-time employees in Germany, of which less than 1,600 are sold and 1,200 administrations. There are 6400 full-time employees worldwide. In this country, a fashion house with its headquarters in Ratingen, North Rhine-Westphalia and Hong Kong still has 140 stores.
Germany is therefore the most important market in the fashion industry. It generates more than half of its total turnover to only $ 15.5 billion in Hong Kong (€ 1.74 billion) for fiscal year 2017/18, which ended on June 30. The company wrote red numbers.
Growth is planned in the future, especially in China, announced the company. So far, the fashion group, represented in more than 40 countries, continues to produce some 87% of its sales in Europe. Union Verdi is afraid of major cuts, especially in Germany. "We have no information on what is really planned," complained Verdi's spokeswoman Cosimo-Damian Quinto. It can not be that one can expand, and the work councils do not mean occupational safety. However, the company's spokesman referred to discussions with employees' representatives.
Like many fashion stores, Esprit is struggling with a difficult market situation and numerous home-made problems. In an intriguing catch market, the company wants to focus more and more on quality in the future. Esprit is not a fast fashion brand or a discount store, it was said. Muodin's company also recognized homemade mistakes such as cuts, product ranges, or brand image.
If the brand is already in the downturn, it would be difficult to defend it, said Axel Augustin, spokeswoman for the BTE spokesman. All in all, the current year of German textiles trade has so far been a significant minus. By the end of November, sales amounted to about 2-3% of the value of about € 65 billion in the previous year, Augustin said ./uta/DP/tos
RATINGEN / HONGKONG (awp international)