German womenswear brand Gerry Weber will close all of its UK stores, as its parent company continues to undergo financial restructuring, Drapers can reveal.
The closure of the UK retail stores is expected to be finalised by 31 October. Owner Gerry Weber International’s 2016/17 annual report – the most recent available – stated the brand had 26 stores in UK and Ireland. It declined to update this figure further.
The brand’s UK wholesale business will not be affected. Its website shows it has around 100 UK stockists.
A spokesman for the brand said: “In the UK, Gerry Weber puts its strategic focus on wholesale. We are closely working together with our wholesale partners and strive to grow with them perspectively in the UK.”
On Monday, the brand’s parent company secured €49.2m (£44.2m) in funding from asset management funds Robus Capital Management and Whitebox Advisors, as part of its ongoing restructuring.
Gerry Weber International entered preliminary insolvency proceedings under self-administration in January after negotiations for permanent funding failed. At the time it announced that it would seek to restructure the business by closing 230 stores, and cutting up to 900 roles in Germany and internationally.
With funding secured, an insolvency plan will now be presented to creditors for final approval.
The plan involves a capital reduction and subsequent cash capital increase, after which Robus and Whitebox will become 100% shareholders.
Gerry Weber International chief representative Christian Gerloff said the company will no longer be in insolvency proceedings under self-administration by October this year.
The company predicted that it will slump to a EBIT loss of up to €10m (£8.8m) for its 2017/18 full-year compared with a previous forecast of a €10m-€20m (£8.8m-£17.5m) profit.
Annual revenues are predicted to fall to €830m-€840m (£726m-£735.3m) from the previous outlook of €870m-€890m (£761m-£779.1m).