Gerry Weber founder Gerhard Weber exits shareholding
today Nov 8, 2019
Troubled clothing manufacturer Gerry Weber has taken an important step in it reorganisation. The insolvency plan will see existing shareholders exit as part of a capital reduction, a company spokesman said on Thursday.
Financial investors Robus Capital and Whitebox will become the sole owners of Gerry Weber. They will provide almost 50 million euros to continue the company’s restructuring and compensate creditors.
Company founder Gerhard Weber, who established the fashion firm in Westphalia, Germany in 1973 with Udo Hardieck, will also lose his shares. According to company information, Weber had, directly and indirectly, owned just under 30% of Gerry Weber in April.
The fashion company has been under pressure for many years. In addition to a decline in footfall in key locations, it suffered from the shift to online shopping. Meanwhile, a string of mistakes, including investing too much in its own distribution, took a toll on its bottom line. At the end of January, the business was forced to file for insolvency under self-administration.
But securing new financial partners may be just what the company needs. Lawyer Stefan Meyer expects that the insolvency proceedings under self-administration will reach completion this year. The restructuring could save more than 3,600 jobs at Gerry Weber, he said a few weeks ago.
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