Retail giant Gerry Weber announces the closure of all its physical stores.
Spanish Firm Secures Gerry Weber Brand, Closes All Stores Nationwide
In a significant development, the insolvent German fashion manufacturer Gerry Weber has announced the closure of all its stores in Germany following the acquisition of its brand rights by Victrix, a Spanish fashion company.
The agreement, approved by the provisional creditors' committee and the provisional administrator Lucas Floether, signifies the end of Gerry Weber's retail presence in its home country. Despite acquiring the brand, Victrix intends to sell Gerry Weber women's fashion in Germany through trading partners who also carry other brands.
The company's approximately 40 stores and outlets in Germany, alongside international stores, are set to shut down over the coming months. The details of the purchase price have been kept confidential.
Gerry Weber, known for its long history in the German fashion industry, has faced financial struggles for years. The brand filed for insolvency for the third time in recent years, with previous turnaround attempts in 2019 and 2023 failing to yield positive results. Significant downsizing measures, including the closure of 122 stores and job cuts of around 450 employees, did not halt the decline.
The struggling fashion industry in Germany has seen several high-profile insolvencies, with companies like Galeria, Esprit, Sinn, and Scotch & Soda filing for insolvency. The weak consumer climate, coupled with increased energy, rent, and wage costs, have compounded the challenges for stationary textile and fashion retailers. Despite rebounding after the Corona pandemic, the sector has yet to regain its pre-pandemic levels.
The Victrix Group, the owner of the Punt Roma brand, is expanding its presence in the upscale mid-price segment, primarily in Central and Eastern Europe, with the acquisition of Gerry Weber. Through the seamless transition of production and other processes to existing Victrix structures, a smooth transition for trade and customers is ensured.
[Source: ntv.de, chr/dpa]
- Gerry Weber
- Insolvency
- Fashion
[1] Gerry Weber brand acquisition price remains undisclosed (ntv.de)[2] No specific details provided on Gerry Weber's German distribution strategy (ntv.de)[3] Part of Victrix Group's focus on relaunch in other markets, such as the Netherlands (ntv.de)
The financial details surrounding the Gerry Weber brand acquisition by Victrix remain confidential.
Victrix plans to sell Gerry Weber women's fashion in Germany through trading partners, potentially extending its reach to other markets such as the Netherlands.
