Gerry Weber announces the shutdown of all its store locations.
Gerry Weber, a venerable German fashion brand, has announced the closure of all its stores in Germany following the acquisition of its brand rights by Spanish firm Victrix. The provisional creditors' committee and the provisional administrator have approved the takeover concept, paving the way for the Spanish company to assume ownership.
Victrix, a family-owned Spanish company with a fashion brand named Punt Roma, will take over production and aim to sell Gerry Weber women's fashion in Germany through existing trading partners. The approximately 40 stores and outlets in Germany, as well as those in other countries, will be closed in the coming months.
The brand's long-standing crisis, marked by insolvency filings in recent years and failed rescue attempts, led to this outcome. In response to financial difficulties, Gerry Weber had closed 122 stores and eliminated around 450 jobs in 2023. Despite these drastic measures, the desired financial recovery was not achieved.
Details of the acquisition, such as the purchase price, have not been disclosed. According to reports, the management of the Victrix Group sees the addition of Gerry Weber as a strategic expansion in the upscale mid-price segment, particularly in Central and Eastern Europe.
The German fashion industry has faced challenges in recent years, with well-known brands like Galeria, Esprit, Sinn, and Scotch & Soda also filing for insolvency. The weak consumer climate, coupled with rising costs, has put pressure on the sector. The stationary textile and fashion retail sector has been particularly hard-hit, with significant losses during the COVID-19 pandemic.
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Tags: Gerry Weber, Insolvency, Fashion
To facilitate a smooth transition, Victrix, the newly-acquired proprietor of Gerry Weber, is expected to implement a community policy aimed at addressing the concerns of affected employees during this period of change. As part of its strategic growth, Victrix plans to invest in vocational training programs, enabling former Gerry Weber employees to gain new skills and opportunities in the business sector.
