Another Esprit subsidiary collapses in Europe

(Source: Esprit US / Facebook)

Esprit Holdings says its Swiss subsidiary CHDA has filed for insolvency, which impacts distribution across Italy and Switzerland. 

Described as “an indirect wholly-owned subsidiary of the company” CHDA is primarily engaged in the wholesale distribution of apparel and accessories in Switzerland. It is the direct shareholder of Esprit Switzerland Retail and Esprit Italy Distribution (ITDS).   

“The insolvency filing made by CHDA may result in ITDS being subject to its own insolvency proceedings in the future,” said Esprit chairperson Christin Chiu in a stock exchange filing.

In the year to December, CHDA achieved revenue of HK$401 million (US$51.356 million), representing about 6.8 per cent of Esprit Holdings’ total revenue for the year. As of December 31, the subsidiary’s total assets were valued at HK$415 million ($53.148 million), or 7.2 per cent of group assets. 

Chiu said CHDA was in over-indebtedness and it became apparent to the board it would not be possible to continue business activities.

This is the latest in a string of subsidiary collapses for Esprit Holdings. Last month, the company placed its seven German subsidiaries in bankruptcy for a second time, after filing for bankruptcy in Belgium and Switzerland in March.

Earlier this week the company said it was in negotiations that would likely lead to the sale of its Greater China business assets. 

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