Esprit Holdings Ltd, a manufacturer of clothing, footwear, accessories, and housewares under the Esprit label, is integrating booked materials in later orders, wherever possible. Since the end of March, however, Esprit’s German legal entities are under a special legal status called “proactive shield proceedings”, which is similar to Chapter 11 in the US.
In view of COVID-19, many apparel factories primarily in developing countries in Asia have reported cancellation of orders from global brands / retailers. Apparel sector being the finest value adding segment in the entire value chain and one of the largest employment providing sector is under despair because of cancelled production orders.
In response to Fibre2Fashion's email to Esprit asking how the company intends to support its suppliers during the current crisis, an Esprit spokesperson said, "At Esprit, sustainability and social responsibility are part of our DNA and at the core of our strategy. For years, we have developed strong partnerships in our supply chain working with reliable factories. Exceptionally, since the end of March, Esprit’s German legal entities are under a special legal status called “proactive shield proceedings”, which is similar to Chapter 11 in the US. Therefore, certain payments for orders with handover to a forwarder before the end of March are right now on hold in a legal process. The final outcome is expected in July."
Esprit Holdings Ltd, a manufacturer of clothing, footwear, accessories, and housewares under the Esprit label, is integrating booked materials in later orders, wherever possible. Since the end of March, however, Esprit's German legal entities are under a special legal status called “proactive shield proceedings”, which is similar to Chapter 11 in the US.#
The spokesperson said some adjustments and cancellation of orders have been necessary due to the decline in demand caused by the COVID-19 crisis. "Wherever possible, we are integrating booked materials in later orders. We are well aware of the consequences for our supply chain partners and factory workers. Their well-being is important to us, as well as the continuity of our business which sustains many people’s livelihood. We are in close contact with all suppliers to ensure transparency in this process. Our goal is to always find a mutually acceptable solution with our partners."
Fibre2Fashion News Desk (RKS)
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