Gerry Weber announces the closure of all its retail outlets.
German Fashion Brand Gerry Weber Acquired by Spanish Firm, Stores to Close
Spanish fashion company Victrix has agreed to acquire the insolvent German fashion manufacturer Gerry Weber, marking the end of physical store operations for the brand. The provisional creditors' committee and the provisional administrator Lucas Floether have given their approval to this takeover plan.
While Victrix, a family-owned firm with fashion brand Punt Roma, will take over the Gerry Weber brand, the approximately 40 shops and outlets in Germany will be closed over the coming months. Instead, Gerry Weber products will be sold via trading partners who also manage other brands.
Victrix views Gerry Weber as a strategic addition to its portfolio, particularly in growing its presence in the mid-price segment, especially in Central and Eastern Europe. By taking over production, Victrix aims to maximize the value of the Gerry Weber brand while streamlining operations.
Gerry Weber, which once sponsored the Halle tennis tournament, has struggled for years. In March, the brand filed for insolvency for the third time in a few years. Previous rescue attempts in 2019 and 2023 were unsuccessful. Despite significant cost-cutting measures that saw the closure of 122 stores and around 450 job losses in 2023, the brand was still unable to recover.
The fashion industry in Germany is currently facing challenging times. Well-known brands such as Galeria, Esprit, Sinn, and Scotch & Soda from the Netherlands have also filed for insolvency. The weak consumer climate in Germany and other parts of Europe, coupled with rising costs for energy, rent, and wages, have significantly impacted the industry. The stationary textile and fashion retail sector has been particularly hard hit, with heavy losses during the Corona pandemic and a struggle to return to pre-pandemic levels.
Sources: ntv.de, chr/dpa
[1] Gerry Weber has a high level of recognition in Central and Eastern Europe.[2] Victrix sees Gerry Weber as a strategic addition to its mid-price segment portfolio in Central and Eastern Europe.
[1] In their community policy, Victrix may consider implementing vocational training programs for Central and Eastern European textile workers, as Gerry Weber has a high level of recognition in this region.
[2] With the acquisition of Gerry Weber, Victrix hopes to boost their finance by expanding in the retail sector, specifically the mid-price segment, not only in Germany but also in other regions such as Central and Eastern Europe, potentially attracting more industry partners and enhancing their business in this segment.
