Struggling fashion brand Gerry Weber shuts down all German stores, with ownership of the label transitioning to new owners.
** closure of Gerry Weber Stores in Germany**
The German fashion manufacturer Gerry Weber has announced the closure of all its stores in Germany, following the approval of the takeover concept by the Spanish fashion company Victrix. The interim creditors' committee and interim administrator Lucas Flöther have endorsed the move.
Victrix, a family-owned Spanish fashion company, is set to acquire the Gerry Weber brand, with production to be shifted to the Spanish company. Approximately 40 stores and outlets in Germany, along with other shops in different countries, will be closed in the coming months. Gerry Weber's women's fashion will be sold through trading partners who also carry other brands.
Gerry Weber, a company plagued by financial woes, has been in a state of crisis for a long time. Previous restructuring attempts in 2019 and 2023 failed, and drastic cuts in 2023 failed to produce the desired positive outcomes. The company closed 122 of its 171 stores and outlets in Germany and eliminated around 450 jobs. Nevertheless, these drastic measures did not stem the company's decline.
With the acquisition, only the brand will continue, and the Spanish company, whose fashion brand is called Punt Roma, will take over production. Victrix aims to expand its position in the upscale mid-price segment with Gerry Weber, particularly in Central and Eastern Europe. By transitioning production and other processes to existing Victrix structures, the company aims to ensure a smooth transition for both trade and end customers.
The German fashion industry is grappling with tough times. Recent insolvencies have been reported among companies such as the department store chain Galeria and fashion retailers Esprit and Sinn. These companies struggle with consumers being more cautious due to weak economic conditions and escalating costs for energy, rent, and wages. The stationary textile and fashion retail sector has been particularly hit hard, suffering losses during the pandemic. Although business picked up afterwards, it has yet to reach pre-pandemic levels.
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- "What will be the impact of the closure of Gerry Weber stores on the German fashion-and-beauty industry, considering the current economic instability and escalating costs?"
- "With the takeover of Gerry Weber by Victrix, could there be a potential change in the business strategies of both companies, particularly in the finance and lifestyle sectors, as they aim to expand their presence in Central and Eastern Europe?"
