GERRY WEBER RETAIL CHAIN DECLARED BANKRUPTCY

A chain of clothing stores in Germany announced the beginning of bankruptcy proceedings. The firm, which managed more than 170 outlets in the country, announced plans to close 122 stores and lay off 350 employees by the fall of 2023.

The reason for the financial collapse in the company is called the consequences of the pandemic and the situation on the territory of Ukraine. The firm plans that during the bankruptcy process it will be possible to restructure and maintain the basic core of the business.

The head of the firm, Angelika Schindler-Obenhaus, told the public that the organization plans to focus on wholesale trade. This, the head of the company said, will be the return of the company to its roots.

More than a decade ago, the company set a course to expand its presence in the market by increasing the number of outlets. However, now the management believes that such a strategy has not justified itself. The business turned out to be unstable and contradicted market trends.

It is reported that the company has already managed to coordinate its plan to reduce jobs and coordinate its interests with trade union bodies. In particular, we are talking about the reduction of about 75 employees who worked in Halle (Westphalia).

The firm appealed to the Essen District Court back in April 2023. Gerry Weber International AG filed an application for the start of the reorganization. This was done in accordance with the country's legislation related to the restructuring and stabilization of the business (the StaRUG Law). Now, Gerry Weber Retail GmbH, a business unit that unites retail enterprises, has declared bankruptcy.

Stefan Meyer was previously appointed Gerry Weber's restructuring expert. He said that the company's current decision to close a significant number of stores is uncontested. According to the expert, bankruptcy will allow the organization to gain stability in the future. Moreover, the procedure is already familiar to the company. More than three years ago, it was through this mechanism that the company managed to avoid economic collapse and escape from insolvency.

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