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Gerry Weber files for bankruptcy

Jan 25, 2019 Germany
 Gerry Weber files for bankruptcy
The Germany-based fashion manufacturer and retailer has applied to preliminary insolvency. This procedure exclusively applies to the parent company Gerry Weber International AG having around 580 employees. All subsidiaries including Hallhuber are excluded from the request
Gerry Weber International AG confirmed today it has applied for preliminary insolvency proceedings under self-administration at the responsible local court Bielefeld, aiming at successfully restructuring the company through the ongoing restructuring program. The application was approved by the local court Bielefeld. The preliminary insolvency exclusively applies to the mother company Gerry Weber International AG with about 580 employees; all subsidiaries including Hallhuber are excluded from the proceedings.

Within the scope of the preliminary self-administration, business operations of Gerry Weber International AG are continued entirely at normal course. According to the current status, the continued financing of operations is safeguarded until the year 2020. The Managing Board remains in office with all powers and responsibilities, ensuring operations. For support, the Managing Board consults the insolvency law experienced and in the fashion industry very well-versed self-administrator and reorganization expert Christian Gerloff, Gerloff? Liebler Rechtsanwälte. In the function of a General Representative, he will coordinate in particular with regard to procedural and insolvency law issues. The local court has appointed lawyer Stefan Meyer, PLUTA Rechtsanwalts GmbH, a restructuring expert with experience in both the industry and insolvency law as provisional trustee (Sachwalter). The staff is immediately informed about the preliminary proceedings. All pay claims of employees are guaranteed by the instrument of insolvency payment.


Sustainable financing of the group failed

The application for the court order of preliminary proceedings under self-administration was triggered by failed talks of Gerry Weber Group with its financing partners. Negotiations were held, aimed at permanently guaranteeing group financing and setting it on a consistent and sustainable foundation. With failure of the negotiations, the application has become inevitable.

"Unfortunately, the application for the court order of preliminary proceedings under self-administration has become inevitable", commented Johannes Ehling, Spokesman of the Managing Board of Gerry Weber International AG. "Up to the last moment there were major efforts, to avert the proceedings. I am absolutely convinced, that after the successful restructuring we will return from the proceedings back to the path to success. With our core business, our strong brands and especially our outstanding team we are ideally positioned for this. Despite the initial disappointment, related to the opened proceedings under self-administration, we can feel, that our restructuring measures and the Performance Program are well received by customers, business partners and employees. This encourages us and this is what we continue to work hard for every day", continues Ehling.

"By entering the preliminary proceedings under self-administration, we are now gaining the flexibility to press ahead with the initiated measures of restructuring. We are benefiting from the fact that over the past few months we have been able to prepare the necessary structures in the financial sector in order to ensure successful management of the company with the greatest possible transparency. We will continue to work hard on this", commented Florian Frank, Member of the Executive Board of Gerry Weber International AG and Chief Restructuring Officer.


About Gerry Weber

Headquartered in Halle/Westphalia, the group operates on a global scale and unites five strong fashion brands under one roof: Gerry Weber, Taifun, Samoon, Talkabout and allhuber. With a distribution network of approximately 1,230 company-managed stores and sales spaces, approximately 2 480 shop-in-shops and 280 franchised stores worldwide as well as brand online-shops in nine countries, the group counts with roughly 6 500 employees worldwide.

In financial year 2016/17 (running from the 1st of November 2016 to the 31st of October 2017) the Gerry Weber group generated sales revenue of 880.9 million euros and operating income in the amount of 10.3 million euros. The Hallhuber subsidiary, which was acquired in February 2015, contributed with 194.3 million euros to Gerry Weber group sales.

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