Popular retail giant Esprit is all set to wind up its operations in India by the end of 2012. The company entered the Indian market in the year 2005 through a distribution deal with Madura Fashion and retail, an Aditya Birla Group’s lifestyle retailer.
Sources from the company revealed that the Espirit was suffering losses of about Rs. 20-25 crore per annum in India, which made it difficult for the brand to maintain a stand in the country. An email was sent to Ashish Dikshit, the CEO of Madura Fashion & Retail in this regard, but it remained unanswered.
Sources also revealed that Madura Fashion and Retail wanted to renew the 7-year-old agreement, but Espirit global management was not keen on it. Madura Fashion and Retail was in discussions with the global company to form a joint venture, in which Esprit merchandise would be locally produced in India. This was to reduce import costs, as well as other operating costs. However, Esprit’s global management refused to relent.
Due to mounting losses, Esprit shut down its Bangalore, Mumbai and Delhi outlets in the year 2011 and these were converted to outlets of other Madura brands like Louis Philippe, Allen Solly or Van Heusen.