Insolvency proceedings began last week with Retail Group, the company that operated Esprit stores in the Czech Republic and more recently the multibrand chain Catches. Esprit collapsed as a brand early in the year, brought down by high energy, transport costs and rent costs. The Catches branded stores were supposed to replace Esprit stores, writes Hospodářské noviny, thanks to a €400,000 loan from its parent company in Germany. But it wasn’t enough.
“Unfortunately, we were heavily impacted by Esprit’s bankruptcy, which pulled us down as well,” Petra Kheková told HN. “At the beginning of September, we had to file for bankruptcy ourselves. We are doing everything we can to minimize the damage for everyone involved.” Esprit’s exit is being blamed on issued connected with the Swiss subsidiary of the Hong Kong-based Esprit. The Czech company’s debts are reportedly in the neighborhood of CZK 20 million, with over 50 full-time staff and another 40 people on part-time contracts. The insolvency administrator is Langmeier & Co. There were nine Catches stores in the Czech Republic in centers such as Palladium, Arkády Pankrác, Palác Flora, Olympia Brno and Westfield Chodov.
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