To recover from the Covid crisis, fashion chain Esprit has to cut costs. Half of its 100 stores in Germany will be closed, 1100 people will lose their jobs. A further 100 jobs will also be lost in the headquarters in Hong Kong.
100 million saved annually
A German court has greenlit Esprit's restructuring plan: 1,200 jobs will be cut, fifty German stores will have to close by November, FashionUnited writes. These measures follow the closing of 56 Asian stores that was announced in April and has since been carried out.
"The impact of Covid-19, subsequent government measures and economic crisis have especially impacted the fashion industry", CEO Anders Kristiansen said. "But this unprecedented situation has required us to challenge ourselves to further evaluate our cost structure and preserve opportunities for our great brand."
The fashion chain hopes these measures will enable it to save more than 100 million euros in costs per year, but at the same time it warns that they come with a hefty (one-off) cost of some 55 million euros.