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Gerry Weber Austria: Insolvency hits fashion industry hard!
The insolvency of GERRY WEBER Austria leads to the closure of branches and highlights the problems in the European fashion trade.
Gerry Weber Austria: Insolvency hits fashion industry hard!
The situation in the fashion trade is becoming increasingly worrying: the Austrian subsidiary of GERRY WEBER International GmbH has filed for bankruptcy. This development coincided with the insolvency proceedings of the parent company in Germany, which were initiated on March 11, 2025. As a result, management suspended operations at most of its subsidiaries, with alarming consequences for many employees and business partners.
The Vienna sales unit, which operated exclusively in the wholesale segment, is no longer supplied with goods. This bankruptcy is not the first of its kind; The fashion chain had to file for bankruptcy in Austria as early as summer 2023 and close the majority of its branches. This third bankruptcy within six years points to deeper structural problems within the group.
Causes of bankruptcy
The insolvency of the Austrian company is due to the financial difficulties of the German parent company. The main reasons are declining sales, general consumer reluctance and the increasing shift in purchasing behavior towards international online retail. Industry experts emphasize that the current weak consumer climate in Europe and the changing purchasing policies of specialist retailers are having a significant impact on financial problems.
Of particular concern is the decline in pre-orders for the third quarter of 2025, which further exacerbated Gerry Weber Vertriebs GmbH's already existing liquidity problems. At the time the bankruptcy was declared, the company only had three employees and the immediate liabilities totaled around 213,000 euros, affecting 22 creditors.
Industry context and prospects
The bankruptcy of GERRY WEBER highlights a worrying trend within the fashion industry. According to Fashion United, corporate bankruptcies in the German fashion market increased by almost 25% compared to the previous year. New market changes are emerging, particularly in the second half of the year, as well-known brands such as Esprit have announced that they will close all branches in Germany, which will cost 1,300 jobs.
Such developments cannot be viewed in isolation. Various companies, from Zalando to Snocks to Sinn and others, show that the industry is under enormous pressure. Political and economic factors, including pandemic-related profit declines and pricing pressures, have further complicated the business environment while financial stress is mounting.
Gerry Weber Vertriebs GmbH has taken over a guarantee for the “GWI Facilities Agreement”, which secures the liabilities of the Gerry Weber Group. The outstanding claims amounting to 46.9 million euros could be made due at any time. Despite these challenges, there do not appear to be any plans to restructure the company. This makes the future of GERRY WEBER in Austria and the affected markets appear uncertain.