ESPRIT: market value slashed by a third following resignations

ANNOUNCED within two days, the resignations of both the CEO and the Chairman of the Hong Kong-based company caused the share price of Espritto slump by 34 per cent. Although CEO Ronald van de Vis reiterated his claim that his resignation was due solely to family reasons, analysts remained convinced that the company was ripe for a takeover bid by private equity concerns or other investors.

Esprit

Analysts are said to be particularly doubtful about the company’s current business plan that focuses on operations in Europe where it competes head-on with such regional giants as Inditex or H&M.


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