The ailing clothing manufacturer Gerry Weber plans to close most of its stores in Germany in the coming months. A total of 122 of the company’s 171 stores and outlets are to be closed by the end of September this year as part of the restructuring efforts, as the company announced on Monday. This will also eliminate around 350 full-time jobs. A further 75 jobs are to be cut in the central areas in Halle (Westphalia).
In the future, the fashion manufacturer will focus more on the wholesale business and thus return to its roots, said company boss Angelika Schindler-Obenhaus. In the branch business, the company will limit itself to the healthy core and close all loss-making locations in Germany. The course taken more than 10 years ago of opening more and more of its own shops has proven to be neither market-driven nor sustainable. A reconciliation of interests and a social plan have already been agreed with the works council for the job cuts.
Bankruptcy proceedings opened on Monday
The restructuring expert Stefan Meyer, who was appointed by the Essen district court in the course of the proceedings, emphasized that the course now taken is “without alternative in order to protect the core of Gerry Weber that is worth preserving and to position the group for the future as robust, resilient and on a financially solid foundation in the market “.
Petra Philippsen, Halle Published/updated: , FAZ authors Published/updated: , recommendations: 7 Johanna Dürrholz Published/updated: , recommendations: 11
In April, Gerry Weber International AG applied to the Essen district court for the initiation of restructuring proceedings in accordance with the law on the stabilization and restructuring framework for companies (StaRUG). Shortly thereafter, Gerry Weber Retail GmbH, in which the branch business is bundled, filed for insolvency under self-administration. The bankruptcy proceedings were opened on Monday.
Just over three years ago, Gerry Weber had to be saved from bankruptcy with the help of insolvency proceedings.