Glonghui, April 8, 丨 Esprit Global (00330.HK) announced that after careful and thorough consideration, the directors of Esprit Belgium Retail N.V. (“BEBR”, an indirect wholly-owned subsidiary of the Company) decided to (i) apply to the Belgian Bankruptcy Court to commence the bankruptcy process for BEBR assets (“bankruptcy application”); (ii) approve the bankruptcy application; and (iii) subsequently filed for bankruptcy on April 8, 2024.
BEBR, a company incorporated in Belgium, is an indirect wholly-owned subsidiary of the company and is mainly engaged in retail distribution of clothing and accessories in Belgium. Since one or more of the applicable percentage ratios relating to BEBR for the year ended December 31, 2023 (see section 14.04 (9) of the Listing Rules) is 5% or more, section 13.25 (1) (b) of the Listing Rules applies to BEBR in accordance with Section 13.25 (2) of the Listing Rules.
The company is currently focusing on a comprehensive restructuring, strengthening its business with wholesale and franchisee partners, and creating new impetus for e-commerce. BEBR's bankruptcy and the closure of its stores are unavoidable.
The overall economic slowdown in Europe, combined with a sharp rise in energy and logistics costs, negative consumer sentiment, and long-term high rents from undersized stores, ultimately made BEBR financially unable to continue its current retail business in Belgium. In view of the tight capital flow situation of BEBR in the European retail business due to the above reasons, the BEBR board of directors reported to the board that BEBR's cash flow was insolvent and that filing for BEBR's bankruptcy was in the Group's best interest.