Esprit is “in discussion” with an investor who would like to acquire its European operations. A deal with “an international private investment group” is close, the company reports.
Restructuring in Europe
It may be too late for the Belgian and Swiss shops, but a last-minute saviour may have been found for Esprit’s other European branches. The group, which is listed in Hong Kong but registered in Bermuda, Wednesday that it expects a cooperation proposal to enter “a potential partnership with the Company, in particular the European business”.
Esprit claims to have held talks with several interested parties, but says it has now received oral confirmation from an unnamed “potential investor”. The loss-making fashion group only revealed that it is “an international private equity group with a strong track record”. According to insiders, India-based Alteria Capital is said to be very interested in acquiring Esprit.
The investor wants to help Esprit “restructure [its] European operations” by taking control of the European business itself. At the same time, the future partner would also invest in Esprit outside of Europe “to benefit from the future growth through the Company’s strategic focus markets”. These core markets are now North America and Asia, the group admits.
(This article has been updated on 12 April to add the name of the potential buyer from India.)
