Gerry Weber files for insolvency petition to restructure German retail business

Gerry Weber International AG has undertaken the financial restructuring process of the company and will file an application for the initiation of proceedings with the competent local court in Essen for this purpose on April 19, 2023.

The company said in a statement that the restructuring project is a result of complex challenges posed by multiple corona-related retail closures in Germany and shifts in customer behaviour - triggered, among others, by the Russian war of aggression in Ukraine, high inflation and lower real disposable incomes.

On the basis of the act on the stabilisation and restructuring framework for enterprises (StaRUG), the company aims to achieve a sustainable balance sheet restructuring of the liabilities. Part of the project is to be a capital reduction to zero, which would also result in the delisting of the shares of Gerry Weber.

"By initiating a preventive StaRUG process, we intend to reorganise our liabilities side. In parallel, we will operationally restructure our German retail business within the framework of a self-administration procedure and thus position the company in a sustainable and more resilient manner. Wholesale business, e-commerce and also foreign business are not affected and will operate as usual," said Florian Frank, CFO of the company.

The company added that further measures of the project include the filing of an application for insolvency proceedings in self-administration of Gerry Weber Retail GmbH at the competent local court in Bielefeld with the aim of optimising the German store network.

"The restructuring project is a necessary reaction to the external circumstances. Retail as a whole has to be realigned. To this end, we want to build the store network of the future. Because we firmly believe in stores. At the same time, we have to put every square metre of space to the test today," added Angelika Schindler-Obenhaus, CEO of Gerry Weber International AG.