Clothing giant Esprit to shut down all 56 stores in Asia outside mainland China as coronavirus ravages sales
- The Hong Kong-listed fashion house says it will close 56 shops in Singapore, Malaysia, Taiwan, Hong Kong and Macau by June 30, and is ‘winding down’ in China
- Those stores represent less than 4 per cent of global turnover, said Esprit, as it negotiates with landlords across markets for rental relief and better terms
Esprit Holdings will close all its stores in Asia outside mainland China as part of its effort to cope with challenges posed by the coronavirus pandemic.
The Hong Kong-listed fashion house announced on Monday that it will close 56 shops in Singapore, Malaysia, Taiwan, Hong Kong and Macau by June 30. Those stores represent less than 4 per cent of the group’s global turnover, and the closures are part of the company’s “restructuring initiatives to focus resources and recalibrate operations” amid the pandemic, it said.
The coronavirus pandemic has hit the retail sector worldwide as consumers stay at home and shops are forced to temporarily close to control the spread of the disease. Some retail firms have turned to governmental help schemes, while many are asking staff to take pay cuts or unpaid leave.
Others have collapsed, like British clothing chains Oasis and Warehouse, as well as fashion and furnishing retailer Cath Kidston.
“The whole industry has been affected by the global crisis. We first felt the impacts in Asia and now in Europe, where many of our stores have been closed. This is forcing us to look at the contribution all markets make to the group’s performance,” said Anders Kristiansen, chief executive of Esprit Group.
Esprit’s proposed store closures are expected to cost between HK$150 million and HK$200 million in one-off costs, which will have a negative impact on the full financial year ending June 30, 2020, it said in a filing to the stock exchange.
