End of an era: Gerry Weber closes all shops in Austria!

End of an era: Gerry Weber closes all shops in Austria!

Halle (Westfalen), Deutschland - The German fashion manufacturer Gerry Weber has decided to finally hire his company. This decision follows three failed bankruptcies and several missed rescue attempts in recent years. According to Kosmo , the step is in the context of a resolving crisis scenar in the fashion industry, which has been shaped by a wave of insolvencies since 2019 and extended to 2023. 

In Austria, Gerry Weber will close his 19 locations. The company tried to stabilize itself through debt reduction and fresh funds, but these rescue attempts were ultimately unsuccessful. The search for a new investor did not lead to the desired goal. In a last turn, the Spanish fashion brand Victrix took over the Gerry Weber brand, but there is hardly anything left of the original structure. Authorities and the management not only fucked off a takeover concept, but also announced the closings in Germany and Austria.

Development of bankruptcy

The bankruptcy of Gerry Weber also affects the retail division in Germany. Here around 40 existing shops and several international shops will close in the coming months. The preliminary administrator Lucas Flöther confirmed the approval of the conditions of the takeover by Victrix, which the brand and production would like to maintain, but in future rely on sales through trading partners. This information can also be found in a report by Zeit

Despite the takeover, the takeover process sees challenges. Gerry Weber has been in a downward trend for years, with the causes of the bankruptcy being multifaceted. The falling purchasing power of consumers, the increased costs and the aftermath of the pandemics were a major problem for many companies in the industry. Gerry Weber is not the only company that was not up to these challenges; Other fashion manufacturers such as Galeria Karstadt Kaufhof, Esprit and Hallhuber also had to register bankruptcy, as reported.

industry context

In the German fashion industry, the current trends and conditions are contradictory. On the one hand, companies report on an increase in sales of 10.8 percent last year. On the other hand, the buying mood of consumers is steamed. Logistics costs have decreased, which has granted some companies the scope for investments. Nevertheless, many brands are under pressure, especially through foreign online textile dealers such as Shein, who act on the market with flexible business models.

Developments around Gerry Weber and the takeover by Victrix impressively show that the challenges in the fashion industry are complex and require creative solutions. The closure of all business of the former fashion giant is another indicator of the current difficulties that the fashion business has to struggle with. How the industry will develop and whether the takeover by Victrix can have a positive change remains to be seen.