Retailer Gerry Weber shuts down all 40 of its physical outlets
Fashion retailer Gerry Weber, known for its sponsorship of the Halle tennis tournament, has announced the closure of all its stores in Germany. The insolvent company, based in Halle/Westphalia, will transfer its trademark rights to Spanish fashion company Victrix. The new ownership has received approval from the provisional creditors' committee.
Set to take effect by the end of August, the closure will affect about 40 branches nationwide, leaving approximately 280 employees without jobs, as stated earlier this week. The new owners aim to sell Gerry Weber women's fashion in Germany via trading partners who already carry multiple brands.
This latest move comes after multiple attempts at rescuing the company in 2019 and 2023, followed by drastic cuts, proved unsuccessful. In 2023, Gerry Weber closed 122 stores and eliminated around 450 jobs, but the radical downsizing failed to rejuvenate the struggling brand.
The fashion industry in Germany is facing tough times, with notable companies such as Galeria, Esprit, and Sinn filing for insolvency. Economic hardship, coupled with increased costs for energy, rent, and wages, has put pressure on many retailers in recent years.
The takeover agreement details between Gerry Weber and Victrix have been kept confidential. Victrix also plans to assume production responsibilities moving forward.
- The fashion-and-beauty business of a kind used by Gerry Weber, now under Victrix, will be distributed in Germany through trading partners who carry multiple brands as part of the company's strategic move.
- Amidst the financial struggles faced by the German fashion industry, which has seen notable brands like Galeria, Esprit, and Sinn filing for insolvency, the Gerry Weber closure marks a significant loss for the industry.
- In an attempt to revive the company, Gerry Weber, even in 2019 and 2023, made multiple attempts, underwent drastic cuts, and even closed 122 stores, but these measures failed to salvage the lifestyle brand's fortunes in the industry.
