Esprit: Negotiations on sale of China business fail

Esprit has broken off negotiations on the potential sale of its Greater China business that had first been struck up towards the end of June. No legally binding contract was concluded with the potential investor, the Hong Kong-based clothing manufacturer announced on Thursday.

The company, which is currently facing insolvency applications for numerous European subsidiaries, has decided to break off negotiations. The reason for the halt in negotiations is unfavourable conditions from the potential investor, which have not led to an economically viable result for Esprit, according to the statement.

Most recently, it was said that the unnamed potential investor would be willing to pay 47.5 million dollars for the brands, together with all rights and benefits associated with these brands, as well as the most important domain names in the Greater China region. The region mentioned includes China, Hong Kong, Macau and Taiwan.

If the deal was successfully signed, Esprit Holding would have received an initial payment of 10 million dollars. Esprit is currently reviewing other offers for their financial and general benefits, but a binding signature is not yet available.