- Prachi Singh |
After filing the insolvency petition for Gerry Weber International, the company has announced that one of its investors has agreed to provide bridge financing of 10 million euros for its Hallhuber subsidiary.
Commenting on the development, the company said in an ad hoc announcement: “With the proceeds from the bridging loan, the ongoing business operations of Hallhuber are safeguarded for the time being. The agreed transaction is an essential step towards the operational and financial restructuring of Gerry Weber Group”.
The company added that in case of purchase option for Hallhuber is executed, Gerry Weber will either retain a 14 percent stake in Hallhuber or a 12 percent stake plus purchase price of 500,000 euros. The purchasing option can only be exercised upon fulfillment of certain conditions, which is expected for May 2019.
The preliminary insolvency filed last month, the company had said, exclusively applied to the parent company Gerry Weber International AG having around 580 employees and all subsidiaries including Hallhuber are excluded from the request.