Gerry Weber to Close All Stores Following Brand Acquisition

In a significant shift for the fashion industry, Gerry Weber, the beleaguered women's apparel manufacturer, has announced the closure of all its retail locations in Germany. This decision comes after the company entered into an agreement with the Spanish fashion firm Victrix, which will take over the Gerry Weber brand.

According to statements from the company based in Halle, North Rhine-Westphalia, the preliminary creditors' committee has approved Victrix's acquisition plan. The insolvency administrator, Lucas Flöther, has also given his consent to the deal.

Under the terms of the agreement, Victrix will assume ownership of the Gerry Weber brand but plans to close approximately 40 remaining shops and outlets in Germany, as well as additional locations in other countries, within the coming months. The Spanish company intends to distribute Gerry Weber's women's fashion through retail partners that carry multiple brands.

Gerry Weber has been facing a prolonged crisis, with previous attempts at restructuring in 2019 and 2023 failing to yield positive results. Despite significant cutbacks, including the closure of 122 out of 171 company-owned stores in 2023, the changes did not bring about the anticipated financial recovery.

As a result, the company is now undergoing a complete withdrawal from the retail market, with only the Gerry Weber brand continuing to exist. Victrix, known for its Punt Roma brand, will also take over the production processes associated with Gerry Weber.

The financial details of the acquisition, including how much Victrix has agreed to pay for the brand, remain undisclosed, as both parties have opted to keep this information confidential.

Victrix's management expressed confidence in the acquisition, stating that Gerry Weber is an ideal fit for their core brand, Punt Roma. They aim to enhance their presence in the mid-range market, particularly in Central and Eastern Europe, where Gerry Weber enjoys considerable recognition.

The broader fashion industry in Germany is currently facing significant challenges. Major retailers, such as the department store chain Galeria, as well as fashion brands like Esprit and Sinn, have also filed for insolvency recently. The ongoing economic downturn has led consumers to tighten their budgets, while costs for energy, rent, and wages have surged.

The situation remains particularly precarious for brick-and-mortar clothing retailers, which suffered considerable losses during the pandemic. Although there was a brief resurgence in sales afterward, businesses have yet to recover to pre-pandemic levels.