Esprit Closing All 93 North American Stores

Esprit will close all 93 stores it operates in North America after failing to find a buyer for the unprofitable business. The U.S. and Canadian subsidiaries of Hong Kong-based Esprit Holdings have lost $206 million over a four-year period ending last year, according to published reports, and may now seek Chapter 11 bankruptcy protection and its Canadian equivalent.

The fate of Esprit's North American stores had been in doubt since September 2011, when the apparel manufacturer and retailer reported that its profit plummeted 98%, the third consecutive annual decline. With its stores soon to close, Esprit is seeking one or more license partners to maintain its presence in North America, according to Patrick Lau, head of investor relations and mergers and acquisitions in a statement.

Esprit makes the bulk (79%) of its sales in Europe. CEO Ronald Van der Vis has said he plans to turn the retailer around by improving fashion designs to revive European earnings while doubling sales in China within four years, according to a report in Bloomberg News.