Stores close

The Esprit insolvency also affects Salzburg

The store in Salzburg's Europark is currently being sold off.(Bild: Tschepp Markus)

Around 40 employees in two stores and at the head office are losing their jobs. The trade union is holding works meetings at the locations next week. 

The Austrian subsidiary of fashion retailer Esprit filed for bankruptcy yesterday at the Salzburg regional court. Insolvency proceedings for the European branch of the international fashion group based in Germany were already opened in mid-May. Now the Austrian subsidiary is also insolvent.

Employees to receive money quickly
A good 40 of the 173 employees across Austria are affected in Salzburg. According to the gpa private employees' union, nine of them work in the Europark and Judengasse branches in Salzburg, and more than 20 in the head office in Bergheim. Their salaries were still being paid until May. Now the employees are to be paid quickly. "We are holding works meetings at the locations from Tuesday to Thursday next week. We will report on the insolvency money there," says Michael Huber, Managing Director of gpa Salzburg.

The international fashion chain recently recorded a sharp drop in sales, according to the company due to serious planning errors. The stock is to be sold off and the stores closed. Four franchisees also sell the Esprit brand in the province.