As per reports, fashion brand Esprit Holdings has terminated its agreement to continue operating in Mainland China from July-end due to material breach of terms by contract partner. The brand retreated from its entire retail business in Asia at the end of June. However, Mainland China was supposed to be an exception and operated under a joint venture

Esprit’s withdrawal from Asia is a part of its latest restructuring efforts, which have only been made more urgent by the pandemic. Based both in Hong Kong and main market of Germany, the brand recorded another net loss of HK$3.992 billion for the financial year ending in June, worsening from a HK$2.144 billion net loss a year earlier. Bottomlines deteriorated largely from an exceptional loss of HK$2.34 billion, including those latest store closures and a 24 per cent drop in its revenue to HK$9.874 billion, back to the level of 2002.

The brand has been under a protective shield process, or a Chapter 11-type restructuring, in Germany, to reduce costs mainly through slashing head count and closing stores. It expects the entire process to be completed by the end of October.