End of an era for California cool as iconic retailer files for bankruptcy

A retailer once hailed as the embodiment of California cool style has filed for bankruptcy, becoming the latest victim of the so-called “retail apocalypse” gripping the US.

Founded in San Francisco in 1968, Esprit grew in popularity in the 1980s and 1990s.

It was loved by young Americans for its brightly colored clothes and latest commercials, including one featuring teenager Gwyneth Paltrow in 1991.

But the company struggled to keep up with increasing competition into the 21st century, and a last-ditch effort to revamp the brand in recent years failed to boost sales.

Esprit filed for bankruptcy in New York on Monday after racking up more than $3 million in debt.

The company will close its 400,000-square-foot headquarters in Manhattan, it announced.

The space, which housed a showroom, photography studio and Esprit’s global design, branding, creative and marketing teams, opened in February 2023.

The headquarters was intended to be a beacon for the revival of the brand and its strategy to regain a foothold in the highly competitive US retail market.

But earlier this year, Esprit reduced its workforce at the facility from 115 to just 50.

The company closed all its physical stores in the US in 2012, but retained some locations in Europe.

As of Thursday, the 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 possible shopping experience.”

“It was unsustainable because of the costs, the rents and the state of the business,” said Tony Strippoli, Esprit’s chief operating officer in the Americas. WWD.

He said the company was “moving too quickly” in an attempt to revive the brand.

‘There was no fashion problem or a brand problem. It was more of a cost issue and related to the state of affairs in Europe. There’s a long legacy of losses there. The North American strategy was to stick with Europe,” he added.

Earlier this year, Esprit closed a total of 160 stores due to bankruptcies in Belgium, Germany and Switzerland, according to the outlet, leaving a handful of locations.

Founded by Susie and Doug Tompkins, Esprit appealed to youth with its laid-back California style and sustainable ethos.

It was known for its basics – including classic denim, oversized sweaters and graphic T-shirts – but also for bright colors, bold patterns and boxy silhouettes.

At its peak, he said, it was worth $800 million SFGateand 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 aesthetic of Benetton commercials in the early 1990s.

In an Esprit commercial from 1991, young people were asked to submit their suggestions to improve the world.

“Give back the land stolen from the Indians,” one ad said.

“I would hand out condoms at every high school in America,” read another, starring teenager Gwyneth Paltrow.

It comes amid widespread store closures across the US.

BuyBuy Baby announced earlier this month that it would close its 10 remaining stores by the end of the year.

The retailer joins companies like Walgreens, Macy’s and Big Lots, which have faced massive closures this year.

Pharmacy giant Walgreens announced the closure of 1,200 locations nationwide.

About 500 of the planned stores will close over the next year, although their locations have not yet been announced.

Big Lots also announced details of another 208 stores it plans to close due to its bankruptcy.

In addition, Macy’s will close 150 stores over the next three years, including closing 55 this year.