Gerry Weber slides into insolvency again

Business

The company headquarters in Halle, Westphalia Credits: Gerry Weber

Less than two years after its last insolvency proceedings, Gerry Weber International GmbH (GWI), the holding company of the Halle, Westphalia-based fashion supplier, has filed for insolvency under self-administration.

The Bielefeld District Court has already approved the application and ordered preliminary proceedings, Gerry Weber announced on Tuesday. In addition, lawyer Lucas Flöther was appointed administrator.

“Despite the profound cuts that Gerry Weber has already made in recent years, and despite the good response from the market to the fashion offering, the company has not yet built up enough resilience to financially compensate for such an accumulation of unexpected crisis factors,” said Christian Gerloff, who was appointed to the management board as a restructuring expert. “The persistently weak consumer climate in Germany and other parts of Europe means that we have to adapt the company's strategy and structures once again.”

Possible follow-on insolvencies of the group's subsidiaries are currently being examined.

Changed purchasing policy creates problems for Gerry Weber

The reason for the renewed restructuring is the cautious pre-order behaviour of specialist retailers due to an increased focus on working capital management, as well as the changed purchasing policy, which has led to a significant decline in pre-orders for the third quarter of 2025, according to Gerry Weber. Although the brand, under the leadership of chief product officer Frauke Stein, has successfully repositioned itself in the modern classics segment, the company has not been spared from the changed purchasing policy of specialist retailers.

In addition, in February, a distribution partner experienced financial problems that could lead to payment delays or defaults. However, the company emphasises that sales in its own retail outlets have remained constant year-on-year.

Business operations will continue without restrictions

The aim of the restructuring is to ensure the continuation of the company and to adapt its structures to the current market environment. Business operations will continue without restrictions during the proceedings, in particular the supply of wholesale customers will remain in place. The financial investors in GWI would financially support a continuation solution, and key operational business partners, for example in the areas of logistics and sourcing, have also pledged their support.

There are also plans to launch a structured investor process in the near future in order to ensure sustainable financing for the business. “It is important that the investor process is managed in a streamlined manner in order to create clarity for customers, employees and business partners as quickly as possible – also with a view to the upcoming order round in April/May,” said Gerloff. “Gerry Weber is still one of the well-known German fashion and lifestyle brands that is attractive for investors with corresponding industry know-how.”

With Gerloff, Gerry Weber is bringing an experienced restructuring expert on board. In recent years, he has supported fashion companies such as Escada and Adler through insolvency proceedings. However, he is also no stranger to the Halle, Westphalia-based fashion supplier: as chief restructuring officer of Gerry Weber Retail GmbH, he already supported the company through its last insolvency.

Third insolvency in six years

This is already the third insolvency within six years for the clothing manufacturer. Back in 2019, Gerry Weber International AG filed an application with the Bielefeld District Court for self-administration proceedings to restructure the parent company. At that time, the financial investors Robus Capital Management and Whitebox Advisors agreed to provide the struggling company with a financial injection of up to 49.2 million euros. In January 2020, the company was finally able to put this first insolvency behind it – but at the cost of over 100 store closures and the loss of numerous jobs.

However, the company did not have much time to breathe. As early as April 2023, Gerry Weber International AG had to restructure again and reorganise its German retail business. The reasons given were, in particular, the pandemic-related closures of the stores in Germany and the changed purchasing behaviour of customers, which was influenced, among other things, by the war in Ukraine and high inflation. In the course of the insolvency, the focus was increasingly on the company's wholesale business, which led, among other things, to the closure of 122 stores.

The restructuring plan also provided for a complete cut in capital. This included reducing the share capital to zero, as a result of which the previous Gerry Weber shareholders left without compensation and the stock exchange listing of the shares expired.

This article was translated to English using an AI tool.

Gerry Weber