What did the bankruptcy of Esprit mean for the many franchisees whose companies were connected to the Esprit brand for prosperity and spoilage? A long-time Esprit franchisee from the Netherlands reports how it went on for him.
It was probably not the step he would have taken in the middle of the high season: the complete redesign of his shops. However, due to the unrest with his franchisee Esprit, Dutch entrepreneur Bob van Lingen had to act. At the end of March, the last of his five branches with a new concept and a new name: Cotta opened. Although it was a challenging time, van Lingen sees how many doors are open in the form of new contacts, new brands and new energy.
Van Lingen led five Esprit franchis filiad in the south of the Netherlands for a long time. Even an expansion was on the plan, because his company should take over the branches of a colleague. “It was discussed at European level and approved by Esprit,” explains Van Lingen in a telephone conversation. At this time, however, more and more Esprit branches in the surrounding countries were able to conclude: “It was quite understandable, because Esprit said that these branches had been making losses for years.” It didn’t get any better, and Van Lingen decided not to wait any longer. “I said that we are looking at what attractive brands there are.” When Esprit initiated insolvency proceedings in Germany in May 2024, the entrepreneur took the initiative and made agreements with wholesal brands.
The first goods arrived within a few weeks, delivered from the existing stocks of the brands. “We were very happy about that, and that’s how we started.” However, the Esprit logo was still hanging on the wall, and the customer: Inside, only noticed in the changing rooms or at the cash register that they bought another brand as an esprit.
From Esprit to Cotta: How franchisee Bob van Lingen reinvented his business
When the news of a possible Esprit bankruptcy circulated, the name Esprit had a negative impact on business. “Especially the employees in the branches suffered from it. Customers: During the final sale in July: ’30 percent discount? You are insolvent, there will definitely be more. ‘ But it was not like that.
With the campaign “Esprit stops, we’ll continue” the company announced: inside to think about a new name. A total of over 800 suggestions were received. Finally, they decided on Cotta, the name is now emblazoned on all facades. The interior has also been revised. “The Esprit concept was quite neutral.” So different colors and new elements were added. “We had a wish list, but the last year was not financially our best, so we had to be creative.” First, only part of the wish list was implemented, the rest follows later. “If you enter Cotta now, you don’t feel like being at Esprit.”
The range at Cotta now includes Garcia, Street One, Casual Friday, Lolaliza, Soaked, Didriksons, St. Tropez and Part Two. “By working with different brands, we get different ideas and a different view of retail,” says van Lingen enthusiastically. “We were stuck with Esprit. We were one with the brand, and then it hurts when a lot of mismanagement gets wrong. You can see it from a distance and have little influence on it.”
One door closes, many others open up to the former Esprit franchisee
Nevertheless, the entrepreneur is grateful. “We quickly had the thought: we would only have done it earlier.” Even if he admits that he would never have dared to take this step without the bankruptcy of Esprit. “But now we had to.” Van Lingen’s enthusiasm can also be felt on the sales area, according to the entrepreneur. “You are really enthusiastic about certain products. I also see it from the employees that have risen enormously,” he laughs. “This shows that you like what comes in here.”
Not only does the staff like to buy, the new range also arrives at the customers: inside. “As soon as new brands arrived in the shop, we were able to record a plus compared to the previous year.” Van Lingen relativizes that a lot of sales were lost in the first half of 2024, since there was no goods in the meantime. But since August there has been growth every month. “We will no longer catch up what we missed in the second quarter of 2024. The second quarter in the Zeeland region is a very important quarter, and we missed that completely.” But the results have been voting confidently since August. “It was a good step we took.”
A change is and remains a change from a franchise business to a multiband store. “It is more work, it has to be established, here too in the office. Who does what? With the reopening of the business in Middelburg, at least some calm returns. “We got so much response, call brands, but also entrepreneurs: inside who want to drink a coffee. Then I tell you: Let me successfully establish this project,” he says with a laugh. “You can see: a door closes, but many others open. This is unprecedented.”
This article previously appeared on fashionunited.es and was used with the help of digital tools translated.
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