Companies

Deichmann explores footwear deal as Esprit faces bankruptcy

Sep 23, 2024 Germany

The Germany-based shoe retailer Deichmann is interested in the footwear brand rights of the recently insolvent Esprit. The two companies have been collaborating since 2019

The shoe retail chain Deichmann has expressed interest in acquiring the brand rights for Esprit’s footwear line, following the fashion brand’s bankruptcy. Deichmann made it clear that its offer is only for the brand rights and not for the company's operational business.

Deichmann has been collaborating with Esprit since 2019, and the two began developing shoe collections together in 2020. The possibility of acquiring the licensing rights was presented to Deichmann on short notice, and negotiations are ongoing. Esprit has not yet commented.

Esprit Europe GmbH and six affiliated companies filed for bankruptcy in May 2024. By the end of the year, Esprit is expected to close all 56 of its stores in Germany, resulting in approximately 1,300 job losses.

The brand rights linked to Esprit's European operations are to be sold. A preliminary agreement was reached between the company's creditors and British investor Alteri, owner of CBR Fashion, which owns brands such as Cecil and Street One. However, the slow progress of this deal led Esprit to search for new potential buyers.

In 2023, Deichmann achieved record gross sales of 8.7 billion Euros, with sales in Germany growing by 9% to nearly 2.8 billion Euros. The company operates around 4,700 stores worldwide, of which 1,400 are in Germany.

Image Credits: across-magazine.com

Germany Acquisitions Bankruptcy Companies Deichmann Footwear