Investor acquires majority stake in Gerry Weber subsidiary Hallhuber
Gerry Weber had big news this week with the announcement that a fund run by Robus Capital Management has taken over a majority share in its Hallhuber brand.
The company will retain a stake of just 12% in the label and will receive a cash payment of €0.5 million, which may not be a huge figure but will be extremely useful as Gerry Weber continues its restructuring and recovery plan.
Gerry Weber had granted a purchase option to the investor in February but the fashion giant had little more to say about the transaction and didn't issue any update about how it has been faring in recent months.
Hallhuber clearly has appeal. It had been the company’s strongest brand, although it struggled somewhat last year. But even with falling sales, it was still more successful than the main Gerry Weber label so it will be interesting to see how the company moves forward with it being dependent on that main brand, along with the smaller Taifun and Samoon labels.
Gerry Weber is among the biggest fashion companies in its native Germany but has been suffering in recent years as that market has proved extremely challenging. Its international business has also been affected as the company hasn't responded fast enough to new channels and evolving tastes among its core consumers.
But it's now working hard to get back on track and is closing more than 200 underperforming store spaces.
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