German footwear retailer Deichmann acquires Esprit's brand rights for shoes

For weeks, rumors have been circulating that Deichmann is interested in the Esprit shoe brand rights. Now the takeover has become reality.

Deichmann has acquired Esprit's brand rights for shoes, the shoe retailer confirmed to FashionUnited on Tuesday. This means that Deichmann will acquire Esprit's shoe brand rights in Europe and the United States. The operational activities are not part of the agreement. Neither party will disclose the acquisition price.

Also a license for clothing?

While it was initially reported that the agreement would only cover the brand’s footwear licenses, the final deal appears to also include apparel. Even the rights to existing Esprit patterns are being transferred to Deichmann. That’s where a partner comes in, as the licenses are going to British company Theia Group of Companies.

The collaboration between Deichmann and Esprit is not entirely new: The two companies have been working together for several years. For example, the shoe collections have been developed together for four years. Moreover, this is not the first time that Deichmann has taken over the licenses of a clothing brand. The shoe retailer acquired the shoe license for the Bench brand back in 2015.

The sale of the licenses to Deichmann is the next step in the insolvency proceedings of the former multi-billion dollar group. In May, Esprit Europe GmbH filed for insolvency under self-administration, together with six other companies in the group. In August, it was announced that Esprit would close all 56 stores in Germany by the end of the year, resulting in the loss of around 1,300 jobs. In the Netherlands, the curtain fell in July, after which the branches closed their doors . The same happened in Belgium in April.

As part of the insolvency proceedings, the European company's brand rights are being sold. Early August, the creditors' committee voted in favor of an agreement with British financial investor Alteri and its fashion company CBR Fashion. The Group's holding company in Hong Kong also agreed to this.

This article originally appeared on FashionUnited.DE, translated and edited to English.