Fashion chain in Thuringia shutters operations: All stores to be permanently closed
Gerry Weber's Last Stores in Germany to Close, Including Those in Thuringia
German clothing manufacturer Gerry Weber is set to close all its remaining stores in the country, marking the end of an era for the fashion retailer. Stores in Thuringia, once a staple of city centers and a significant contributor to the image of German shopping streets, are among those to be affected.
The Spanish fashion company Victrix has taken over the Gerry Weber brand but will not maintain its store network. According to the German Press Agency, a large number of stores were already closed in 2023, and a radical clearance is now underway, encompassing all remaining stores, including those in Thuringia. The move will result in job losses for many employees nationwide.
Thuringian companies are brace for a potential blow, with hundreds of jobs at risk. Speaking on the developments, a local representative commented, "It doesn't look good."
Gerry Weber's financial struggles have been ongoing for years. Restructuring attempts in 2019 and 2023 were unsuccessful. Despite drastic measures such as employee concessions in 2023 and an austerity course, the company, which once operated 171 stores, has no stores left following the closures.
In Thuringia, stores in Erfurt Thuringia Park and Mühlhausen Bahnhofstraße have already closed, leaving behind vacant storefronts. The Thuringian Retail Association once reported over 60 stores with around 200 employees in the state.
The crisis in the German fashion industry is intensified by rising costs, waning buying power, and the aftermath of the corona period, which have put significant pressure on stationary retail. Brands like Galeria, Esprit, and Sinn are among those fighting for survival or have filed for insolvency. Gerry Weber is the latest to feel the pinch.
The brand's shift to an external sales model, spearheaded by its new owner Victrix, aims to reduce costs and improve operational efficiency by partnering with existing retailers rather than maintaining its own stores. The change in ownership and business model is unlikely to have a significant impact on Thuringia, but the state might indirectly experience the effects of a broader economic downturn in the German fashion industry.
- The closure of Gerry Weber's stores in Thuringia signifies a significant shift in the retail industry of the region.
- The financial difficulties of Gerry Weber, a once prominent player in the fashion-and-beauty industry, have extended to other businesses within the sector, such as Galeria, Esprit, and Sinn.
- The shift of Gerry Weber's brand to an external sales model, overseen by new owner Victrix, marks a trend in the industry towards cost reduction and enhanced operational efficiency through partnerships with existing retailers.
