Esprit, a renowned fashion retailer that dominated the ’80s and ’90s, has filed for bankruptcy in the US. The company will close its two American subsidiaries, Esprit US Distributions Limited and Esprit US Retail Inc., as part of the bankruptcy proceedings. In the filing, Esprit cited “weak business and financial conditions” and “unsatisfactory operating results” as the reasons behind the decision.
The company stated that it was “unlikely” the subsidiaries could generate enough revenue to cover operating costs and meet debt obligations. Esprit has faced challenges in recent years. In 2012, the company closed all its US stores due to lack of profit.
In 2020, Esprit filed for bankruptcy but managed to restructure its finances and emerge from bankruptcy. The company attempted a comeback in North America in 2022, starting with a pop-up store in LA. However, the planned expansion to New York, Miami, Vancouver, and Toronto will no longer happen.
Esprit, known for its iconic logo of an “E” made with three bars, has been in business for 60 years. The fate of its worldwide presence remains uncertain, but the American operations will now be liquidated.
Esprit’s US bankruptcy and closures
Esprit U.S. has accumulated more than $3 million in liabilities and will close its 38,000-square-foot New York headquarters at 160 Varick Street in Manhattan. The facility, which opened in February 2023, housed Esprit’s global design, branding, creative, and marketing teams, as well as a showroom and photo studio. Tony Strippoli, chief operating officer of Esprit in the Americas, said, “With costs and rents and the state of the business, it was unsustainable.” He added that the company “ramped up too fast” in an attempt to revive the brand.
Earlier this year, Esprit’s retail operations in Belgium, Germany, and Switzerland, totaling 160 stores, were shut down through bankruptcies. The U.S. business is owned by the parent company based in Hong Kong, which is owned by several insiders and institutional and other investors. Esprit was founded in 1968 by Susie and Doug Tompkins in San Francisco, promoting sustainability and a California laid-back style.
The brand was known for well-made basics, bright colors, patterns, oversized silhouettes, classic denim pieces, and sport-inspired details. By 1978, sales topped $100 million a year. Over the years, the brand suffered through management changes, reorganizations, and product revamps, eventually losing relevance.
The 2023 reveal of the new Esprit collection emphasized versatility and a combination of outdoor and city styling, which starkly contrasted with its past success. The closure of Esprit’s US operations marks the end of a 56-year journey for the iconic fashion retailer. The brand’s struggle to adapt to changing fashion trends and consumer preferences, coupled with intense competition and financial challenges, ultimately led to its downfall in the American market.
