Esprit reports US$503 million loss as Covid-19 interrupts reform plan

Esprit has been facing difficult times much before the pandemic started owing to enfeebled sales and has now warned shareholders that it will be posting a loss of US $ 503.2 million in its annual report slated to release late next month.

The European entities of the retailer are already under statutory administration and its shares were trading for as low as 12 cents in Hong Kong.

Many analysts and investors believe the company has no reason left to continue trading.

COVID-19 has had a significant impact on sales resulting in a 24 percent decline in revenue to US $ 1.277 billion from US $ 1.66 billion last year.

The company also reported expenditure of US $ 310 million on trademarks, provisions for store closures, severance payments, property and plant and equipment.

Apart from this, the management has also been seeing tough times with Karen Lo, part of the founder’s family, calling for the removal of CEO Anders Christian Kristansen and CFO Dr. Johannes Georg Schmidt-Schultes from the board in a special meeting of the shareholder in July.

Earlier in July, Esprit said it would let go of 1,100 employees, mo