Hongkong Fashion Group Esprit Will Restructure Its Debt And Its Subsidiary Has Filed For Bankruptcy Protection.

In March 27th, Hongkong fashion retail group Esprit Holdings Ltd (Esprit) announced that, under the influence of the epidemic, several German subsidiaries have launched Protective similar to the bankruptcy protection of Chapter 11 in accordance with the German bankruptcy law. Shield (shield) procedures to protect the liquidity of each subsidiary, ensure that the business can continue to operate, while protecting Esprit group from creditors in the coming months.

Under the program, Esprit group will restructure its debt and long-term lease contracts. In addition, Esprit is applying for salary subsidies to its employees in Germany. Under the supervision of the court appointed supervisors, Esprit's management team will continue to be responsible for the management, and will also make a reorganization plan, which will ultimately require the approval of the creditors' meeting.

Anders Kristiansen, chief executive of Esprit, said: "under the current new crown epidemic situation, our business has been greatly affected. After filing for bankruptcy protection, we will be able to maintain liquidity and focus on group reorganization. We hope that Esprit will continue to live and seize growth opportunities after the outbreak. "

Germany is the main market of Esprit, accounting for more than 1/3 of the group's sales. Before the outbreak, Esprit's overall business performance was already poor. At the end of 2 this year, Esprit announced the first half financial year of the 2019/20. As of December 31, 2019, sales revenue fell by 11.8% to HK $5 billion 760 million compared with the same period last year. The sales revenue in the German market decreased by 12% to HK $2 billion 50 million compared with the same period last year. The Asian market suffered the most serious losses and sales revenue was HK $356 million.

Last December 1st, Si Jie Global Holdings Limited announced that its wholly owned Affiliated Companies Wancheng Resources Co., Ltd. (hereinafter referred to as Wancheng resources) signed a joint venture agreement with the GXG brand's parent company and mosang Group Holdings Limited to jointly manage Esprit. In mainland China, as part of the transition, the brand will close some shops or transfer the assets of the remaining Chinese shops to the joint venture company.

Esprit was listed on the stock exchange of Hongkong, and its share price was closed at HK $0.62 per share in April 1st, down 6.06%.