Fashion brand Esprit has filed for insolvency for seven of its subsidiaries in Düsseldorf, Germany, due to financial challenges.

Esprit Holdings, listed in Hong Kong and operating in over 40 countries, stated that it is 'unviable financially to continue the business as it is currently structured in Germany.' The affected entities include Esprit Europe GmbH and six other German subsidiaries.

High rents, labor costs, energy prices, and the after-effects of the coronavirus pandemic and international conflicts have weakened their finances.

Esprit has already filed for bankruptcy in Belgium and Switzerland earlier this year.

The insolvency could impact around 1,500 jobs, but no shop closures have been announced yet.

Management is working on restructuring plans and seeking new funding, with potential investors expressing interest in strategic partnerships.

A financial investor is reportedly in advanced talks to acquire the brand rights for Europe.