German shoe retailer Deichmann has expressed interest in acquiring the shoe brand rights of the insolvent fashion brand Esprit. This development marks a potential expansion of Deichmann’s existing partnership with Esprit, which has been in place since 2019.
Deichmann’s strategic move
Deichmann, Germany’s largest shoe retailer, has confirmed its interest in Esprit’s shoe brand rights to the German Press Agency (dpa). A company spokesperson clarified, “The offer relates exclusively to brand rights and not to operational company shares.” This move comes after years of collaboration between the two companies, during which Deichmann has been selling Esprit-branded shoes and jointly developing shoe collections with the fashion brand for the past four years.
The shoe retailer was recently made aware of the opportunity to acquire the license package, and discussions are currently underway. Esprit, however, has declined to comment on the matter when approached for a statement.
Esprit’s insolvency and restructuring
In May, Esprit Europe GmbH and six other group companies of the fashion conglomerate filed for insolvency under self-administration. By early August, it was announced that the fashion group would close all 56 of its stores in Germany by the end of the year, resulting in job losses for approximately 1,300 employees.
The brand rights for the insolvent European business are now up for sale. The creditors’ committees of the German Esprit companies have agreed to sign a term sheet with British financial investor Alteri and its fashion company CBR Fashion, which owns the fashion brands Cecil and Street One. The group’s holding company in Hong Kong has also given its approval.
Deichmann’s strong market position
Deichmann, a family-owned company, achieved a record gross turnover of 8.7 billion euros in 2023. Its sales in Germany increased by around nine percent to nearly 2.8 billion euros. The company operates approximately 4,700 stores worldwide, with 1,400 located in Germany.
This potential acquisition of Esprit’s shoe brand rights could further strengthen Deichmann’s market position and expand its brand portfolio in the competitive fashion retail sector.
