Zhongtong Finance App news, Esprit Holdings (00330) issued an announcement regarding the self-management procedures of its former German subsidiary. The former German subsidiary management confirmation approved by the court, settlement agreements, etc. have been finalized and signed today, the signed documents are currently being scanned and will be submitted for company filing.

This transaction involves (including) the company receiving 25% of the net income generated by Esprit fashion business in Europe during 10 fiscal years from fasbra SE (i.e. Deichmann SE, the existing authorized licensor of the Group in the European footwear business), a wholly-owned subsidiary. Investors will also directly pay cash to the former German subsidiary to repay their creditors' claims. In addition, several domain names registered under the former German subsidiary, unrelated to the European business, will be transferred to the company. In exchange, all intellectual property rights required to operate the Esprit fashion business in Europe, along with all ancillary rights and obligations, several domain names, several social media accounts, and related franchising rights for American footwear, will be transferred to the investors. Currently, the company's licensing fees from the U.S. footwear-related franchising business are negligible.

The former German subsidiary submitted a self-management application to the main bankruptcy court in Dusseldorf, Germany, on May 15, 2024, and the company cannot control the self-management procedures of the former German subsidiary. After the above settlement arrangements are completed, the company will retain all trademarks in other regions globally and will continue to utilize these remaining trademarks to develop and expand its licensing business in areas and product categories that have not yet been developed.