A retailer once hailed as the epitome of California cool has filed for bankruptcy, becoming the latest victim of the so-called “retail apocalypse” sweeping the United States.
Esprit, founded in San Francisco in 1968, gained popularity in the 1980s and 1990s.
Young Americans loved him for his brightly colored clothes and avant-garde commercials, including one featuring teenage Gwyneth Paltrow in 1991.
But the company struggled to keep up with growing competition in the 21st century, and a last-ditch attempt to rebrand in recent years failed to boost sales.
Esprit filed Chapter 7 bankruptcy notices in New York on Monday after accumulating more than $3 million in liabilities.
The brand was beloved by young Americans for its brightly colored clothing and avant-garde commercials, including one featuring teenage Gwyneth Paltrow in 1991.
Esprit, founded in San Francisco in 1968, gained popularity in the 1980s and 1990s.
The company will close its 38,000-square-foot headquarters in Manhattan, it announced.
The space, which housed a showroom, photo studio and Esprit’s global design, brand, creative and marketing teams, opened in February 2023.
The headquarters was intended to be a beacon for the brand’s resurgence and its strategy to regain a foothold in the highly competitive American retail market.
But earlier this year Esprit reduced staff at the facility from 115 to just 50.
The company closed all of its physical stores in the United States in 2012, but kept some in operation in Europe.
On Thursday, its online store was closed, with a message saying the company was “working on an exciting new redesign of our US website to give you the best shopping experience possible.”
“With the costs, the rents and the state of the business, it was unsustainable,” said Tony Strippoli, Esprit’s director of operations in the Americas. World Water Day.
He said the company “moved too quickly” in an attempt to revive the brand.
‘There was no fashion or brand problem. It was more of a cost issue and related to the state of the business in Europe. There has been a long legacy of loss there. The North American strategy was to cling to Europe,” he added.
Earlier this year, Esprit closed a total of 160 stores due to bankruptcy in Belgium, Germany and Switzerland, according to the outlet, leaving a handful of stores remaining.
The company closed all of its physical stores in the US in 2012, but kept some in operation in Europe (pictured: a commercial from the 1980s).
Esprit, founded by Susie and Doug Tompkins, appealed to young people with its laid-back California style and sustainable ethos.
She was known for her staple pieces, like classic jeans, oversized sweaters, and graphic T-shirts, as well as her bright colors, bold prints, and boxy silhouettes.
At its peak, it was worth $800 million, according to SF Gateand had hundreds of stores in the US, Europe and Asia.
The brand was one of the first to use real people in its advertising campaigns, led by photographer Oliviero Toscani, who also designed the aesthetics of Benetton commercials in the early 1990s.
A 1991 Esprit commercial asked young people to submit their suggestions on how to improve the world.
“Return stolen land to Native Americans,” one ad said.
“I would distribute condoms to every high school in America,” said another, featuring teenage Gwyneth Paltrow.
Doug and Susie Tompkins posing with Esprit employees in 1985
Esprit filed Chapter 7 bankruptcy notices in New York on Monday after accumulating more than $3 million in liabilities.
Esprit executive Susie Tompkins (far right) works with designers Karen Johnson and Doreen Chen in the 1980s.
It comes amid widespread store closures across the United States.
BuyBuy Baby announced earlier this month that it would close its remaining ten stores by the end of the year.
The retailer joins companies like Walgreens, Macy’s and Big Lots, which have faced mass closures this year.
The pharmaceutical giant Walgreens announced the closure of 1,200 stores throughout the country.
About 500 of the stores slated for the cut will close over the next year, although their locations have not yet been revealed.
Big Lots also announced details of another 208 stores it plans to close as it fights bankruptcy.
Additionally, Macy’s will close 150 stores over the next three years, including closing 55 this year.
