Clothing giant Esprit is to close all its stores in Asia, except those in Mainland China, by the end of June.
The decision follows an appalling slump in sales during the last nine months, which worsened during the March quarter when the Covid-19 crisis hit, forcing retail stores to close or reduce trading across many markets.
All 56 company-run stores located in Singapore, Malaysia, Taiwan, Hong Kong and Macau will close, but the company says the sales through those shops represented less than 4 per cent of group turnover during the nine months to March.
The closure of stores will also result in one-off costs for store closures, impairment of assets and inventories and for staff severance payments.
The total cost will be in the range of HK$150 million to HK$200 million (RM82.2 million to RM109.8 million).
However, the company will continue to operate wholesale and licensing businesses in those markets, suggesting the brand will endure, most likely through department stores and multi-brand stores.
Sigh.. another one bites the dust 😞
Source : SCMP