Hong Kong-owned apparel company Esprit has announced it is to divest its loss-making operations in Australia and New Zealand. It follows hot on the heels of Avon, which also abandoned New Zealand and Australia in April.
In a statement made to the Hong Kong stock exchange earlier this month, a representative from Esprit’s board of directors said divesting the company’s Australian and New Zealand operations would allow it to concentrate efforts and resources in developing other markets in Asia.
Esprit was founded in the US in 1968, and is a mass-market apparel retailer. It’s present in 40 countries with 761 retail stores and over 6,332 wholesale points of sale. Esprit is headquartered in Germany and Hong Kong.
Esprit foresees profitable growth opportunities in the future in markets like China, Hong Kong, Taiwan, Singapore and Malaysia. For the financial year ended 30 June 2017, the Australia and New Zealand operations contributed HK$297 million (NZD$53.9 million) to the Group’s revenue, representing less than 2 percent of Esprit’s total revenue.
The intended divestment will involve closing down 67 directly-managed retail stores, which includes 38 concession counters in department stores and 13 off-price outlets. This includes six stores in New Zealand, and will affect 30 Kiwi staff.
Esprit stores for New Zealand listed online are:
- Westfield St Lukes, Auckland
- Sylvia Park, Auckland
- Newmarket, Auckland
- Hornby, Christchurch
- Queensgate, Lower Hutt
- Bayfair, Tauranga
Plus a discount outlet at DressSmart, Auckland.