Shoe retailer Deichmann buys rights to fashion brand

 

Someone still believes in Esprit: Deichmann is buying the rights to the insolvent fashion group’s brand name for Europe and the USA. The shoe retailer has been selling shoes with the Esprit label for a long time. In the future, he will no longer have to pay license fees for this. Operational parts of the company will not be taken over.

After years of problems, the fashion group Esprit filed for insolvency in May of this year and announced the closure of its branches in Germany. In Switzerland, Esprit Switzerland Retail AG has filed for bankruptcy and closed its stores. However, the stores of the Esprit Wholesale Group, i.e. independent franchisees, are still open.

Fashion rights resold

But what happens next when it comes to fashion at Esprit is still unclear. In addition to the Esprit rights for the shoes, Deichmann also buys those for the clothing. However, the company does not want to run the fashion business itself.

The shoe retailer therefore immediately sells the rights to the brand exploiter Theia Brands, as stated in a statement on Tuesday. It is not known what his plans are. According to its own information, the company specializes in “reinventing and rejuvenating” clothing brands.

By purchasing Esprit, Deichmann beat out the financial investor Alteri, who was also interested in the brand. In August, Esprit said that the creditors’ committee had decided in favor of the company, which is backed by the private equity house Apollo Global Management. Alteri is already involved in brands such as Cecil and Street One. But apparently Deichmann has now made a more attractive offer. The selling price is not disclosed.

The deal fits into Deichmann’s strategy, which means it will own a new brand. For example, the Essen-based group already holds the European rights to the Italian sports brand Fila and the children’s shoe brand Elephants.

Special brand shoes for Deichmann

In addition, Deichmann already works closely with well-known independent brands such as Adidas. Specifically, he has special models made with the corresponding logos for his stores. As a rule, these are shoes in the cheaper price segment. In this way, Deichmann can broaden the range in its stores and enhance it through the presence of brands.

In the Deichmann stores the brand share is around 30 percent; in the group as a whole the share is slightly higher. In other store formats, such as the sneaker chain Snipes or in American stores, there are significantly more branded shoes on the shelves.

Its sheer size gives Deichmann leeway when shopping. The company began verticalizing procurement around the turn of the millennium. This means that the company has the shoes manufactured directly by the supplier according to its specifications. Because this eliminates the need for middlemen, Deichmann achieves lower purchasing prices.

Deichmann achieved sales of 8.3 billion euros in 2023, making it by far the largest shoe retailer in Europe. The group has been present in Switzerland since it took over Fügenbach in 1973. Deichmann also owns the Ochsner Shoes chain and the sporting goods retailer Ochsner Sport. The latter announced in the summer that it would take over 27 of the 49 branches of the Migros subsidiary SportX.