Gerry Weber closes all shops: brand under a new flag!

Gerry Weber closes all shops: brand under a new flag!

Gerry Weber International AG, known for your women's fashion, is facing a dramatic change. The company has announced today to close all business in Germany after it has filed for bankruptcy. The preliminary creditor committee has approved the takeover concept of the Spanish fashion company Victrix, which the Gerry Weber brand will take over. The preliminary administrator Lucas Flöther also gave his approval.

In the coming months, around 40 Gerry-Weber shops and outlets in Germany, as well as international shops, will be closed. The brand's fashion fashion will in future be sold through trading partners that will also lead other brands. A special challenge for Gerry Weber was the renovation attempt in 2019 and 2023. As early as 2023, 122 of 171 own shops and outlets were closed, which affected about 450 jobs.

market changes

The takeover by Victrix sees the company as a way to expand its position in the upper middle price segment, especially in Central and Eastern Europe. Although the Gerry Weber brand continues to exist, the company, as we know it, will soon disappear from the market. The exact financial details of the takeover are not known, since silence was agreed on the economic aspects.

The pressure on the fashion industry remains high. In Germany in particular, the industry is faced with continuing bankruptcies. Among other things, companies such as Galeria, Esprit and Sinn have undergone similar developments. Due to a weak economy, customers are becoming increasingly economical, which further affects the situation of the brands.

industry conditions

The fashion industry continues to fight with a steamed buying mood, despite a slight improvement in the business situation at some German fashion chains. In the course of Corona pandemic, there was increasing prices, lack of raw materials and supply chain problems. President of the German Fashion Association GermanFashion, Gerd Oliver Seidensticker, reports on a positive trend reversal, with a increase in sales of 10.8 percent. In contrast to the bankruptcies, which are still happening through the industry.

Another problem is the energy crisis that has become financial fatigue for many companies. Surveys among members of the fashion association show stagnating sales expectations for 2024 and negative earnings development. The inpatient textile and fashion trade, which has already suffered high losses during pandemic, has not yet found a stable business model.

While C&A plans to expand its branch network in Germany, the pressure of online retailers such as Shein remains an important topic that also puts pressure on western brands. The fashion industry in Germany is therefore still facing major challenges that both internal and external causes have, and it remains to be seen how the market will develop.

For more information about Gerry Weber's situation and the current developments in the fashion industry, see wdr and . .