Shock in Germany: Gerry Weber closes all branches with mega discounts!

Shock in Germany: Gerry Weber closes all branches with mega discounts!

In a sad chapter for the fashion industry in Germany, the traditional brand Gerry Weber will close all 40 branches in the country. The fashion manufacturer based in Halle/Westphalia filed for self-administration insolvency on June 18, 2025, which means the final withdrawal from brick-and-mortar retail. With around 560 employees, including many long-term employees, the loss is now becoming tangible as the stores are going out of business and will in future only be available through retail partners. Loud Mercury Clearance sales are already underway in the affected branches, and discounts of up to 70 percent are attracting customers to the stores.

The wave of closures includes branches in cities such as Brühl and Hamburg as well as in various Berlin districts, which are expected to close many of their doors by the end of August 2025. In Speyer, a closure is still uncertain and is vaguely in the summer. Meanwhile, a Modesso Group branch in Viersen remains open, which represents a small ray of hope in these dark times.

Difficult times for the fashion industry

Gerry Weber is not alone in his misery. The entire fashion industry in Germany is under pressure. 2023 proved to be particularly challenging, marked by uncertain economic conditions, inflation and a decline in consumer confidence. According to a report by McKinsey Several traditional German brands, such as Peek & Cloppenburg, have also filed for bankruptcy. Brick-and-mortar fashion retail experienced a 12% decline in sales in the third quarter of 2023, further straining the fragile ecosystem.

The situation for Gerry Weber had been tense for a long time. After failed attempts at restructuring in 2019 and 2023, the pressure continues to increase. The takeover by the Spanish company Victrix, which wants to relaunch the Gerry Weber brand under its own structures, will raise some questions, especially regarding the economic details of the takeover, which have so far been kept secret. Victrix plans to centralize production and expand the Punt Roma brand, but the fate of the Gerry Weber branches seems sealed.

The outlook into the future

For many consumers, this wave of closures comes at an economic climate where thrift is the new watchword. Rising costs for energy, rent and salaries are putting strain on households, while demand for clothing and shoes is falling. Loud daily news 76% of German consumers plan to spend less money on fashion, highlighting the uncertain future for companies like Gerry Weber.

Amid all these challenges, the fashion industry is required to reinvent itself. Trends such as sustainability and authentic brand communication are becoming increasingly important. The coming years could be crucial for Gerry Weber and the entire industry - whether these challenges will be seen as opportunities for change remains to be seen.