Esprit to Divest North American Operations

Esprit Holdings (Hong Kong) is pulling out of the North American market and a handful of European countries as part of a restructuring plan, reports Women’s Wear Daily.

Esprit’s decision includes divesting operations in North America and exiting from retail operations in Spain, Denmark and Sweden. The fashion brand also announced that it will close down additional non-profitable stores elsewhere.

“The brand has gradually lost its soul over the past few years. The heritage of the brand has been neglected and the company lost its customer focus,” Ronald Van Der Vis, Group chief executive of Esprit, said in a prepared statement at a new conference.

Executives told WWD that the company is exploring its options to divest the brand's North American holdings, which could include a sale, licensing, or closure.

The company posted it third consecutive year of decline in annual profit.