Brief: Esprit Holdings Updates On Protective Shield Proceedings

Esprit Holdings

01/07/2020 14:27

July 1 (Reuters) - Esprit Holdings Ltd  0330.HK :
    * ESPRIT HOLDINGS UPDATES ON PROTECTIVE SHIELD PROCEEDINGS
    * COURT CONSENTS TO OPENING OF INSOLVENCY PROCEEDINGS AS
SELF-ADMINISTRATION PROCEEDINGS
    * COURT'S CONSENT ALLOWS SUBJECT UNITS TO CONTINUE WITH
SELF-
ADMINISTRATION PROCESS UNDER SUPERVISION FINAL CUSTODIAN
    * SUBJECT UNITS PLAN TO SUBMIT INSOLVENCY PLANS TO COURT TO
IMPLEMENT RESTRUCTURING PLAN
    * GLOBAL HEADCOUNT REDUCTION PLANNED: EXPECTED TO AFFECT
ABOUT
1,200 OF EMPLOYEES GLOBALLY
    * A MEETING OF CREDITORS OF THOSE UNITS IS SCHEDULED TO BE
HELD ON
19 AUGUST
    * INTENDS TO IMPOSE PERMANENT SALARY & BENEFIT REDUCTIONS
FOR
NON-STORE PERSONNEL
    * TARGETS TO CLOSE ABOUT 50 STORES IN GERMANY BY END OF
NOVEMBER
2020
    * ESTIMATED THAT IMPLEMENTATION OF COST-CUUTING MEASURES
WILL
TRANSLATE INTO SAVINGS OF IN EXCESS OF HK$ 900 MILLION
    * ESPRIT HOLDINGS INTENDS TO FURTHER REDUCE ITS COSTS BY
RE-NEGOTIATING CONTRACTS WITH SERVICE PROVIDERS
    * ESPRIT HOLDINGS SEES ESTIMATED IMPLEMENTATION OF
COST-CUTTING
MEASURES TO RESULT IN EXCEPTIONAL ONE-OFF COSTS OF ABOUT HK$ 500
MILLION
    * ESPRIT HOLDINGS SEES ONE-OFF COSTS TO HAVE AN IMPACT ON
GROUP'S
RESULTS FOR FY ENDING 30 JUNE 2021

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