Hong Kong-based fashion retailer Esprit is closing all stores in Asia outside of mainland China, as it grapples with the impacts of Covid-19.
It will close 56 outlets across Singapore, Malaysia, Taiwan, Hong Kong and Macau by 30 June, and also wind down its business in China.
The move is part of a plan for the firm to restructure and focus its resources as it goes through the pandemic.
Esprit was already facing a major and prolonged slump in sales over the past nine months, according to InsideRetail Asia.
In Asia, store sales had fallen by 48.7 per cent over nine months, then dropped further to 61.3 per cent from March 2020.
The 56 stores that are set to close only represented less than 4 per cent of the group’s turnover during that nine months.
After the closures, Esprit plans to focus mostly on its European markets. However, it will still carry on with wholesale and licensing in Asia, and a joint venture in China.
The closures could cost the company between HK$ 150 million and HK$ 200 million (S$ 27.5 million and S$ 36.6 million).
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