Espirit stock tumbles on allegations of overstating stores

Retail clothing maker Espirit Holdings (330.HKG) saw its share price fall 10% on Wednesday amid allegations from the Chinese-language magazine Next that the firm had overstated the number of its outlets in China, MarketWatch reported. The allegations come at a particularly sensitive time for the company: Espirit’s stock has fallen sharply since September, when the firm reported an annual profit decline of 98%, and its CEO said that the firm had “lost its soul.” Next, a Hong Kong-based publication, reported in May that Chaoda Modern Agricultural Holdings (682.HKG) had exaggerated the size of its China operations, information that ultimately led to the suspension of trading in the company’s shares last month.