Esprit Plans To Close All North American Stores

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February 3, 2012

New York, February 3 (FinanceEnquiry.com) - Battered by last year’s 98 percent drop in earnings and failing to find a buyer for its unprofitable business, Esprit Holdings Ltd. is now planning to close all of its stores in North America. The Hong Kong-listed clothing retailer is seeking one or more licensed partner in order to maintain its brand presence in North America. No decision has yet been taken by the US and Canadian subsidiaries regarding filing for bankruptcy protection or equivalent action in Canada.

Esprit is trying to cut its losses in a difficult market situation. Its stock rose 1.1 percent to HK$11.56 at the close in Hong Kong trading. The company announced last year that its US and Canadian operations resulted in a loss of HK$1.6 billion in a four-year period. It further stated that the North American subsidiaries of the company intend to close all stores in North America unless they can find a potential partner for North America.�

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Reliable sources have also revealed that the clothing retailer is trying to sell its US and Canadian businesses. In September, its full-year profit slumped 98 percent to HK$79 million as it booked costs for closing stores throughout the world and for selling its operations in the US and Canada. Nearly 79 percent of the company’s sales come from Europe.

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