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Struggles in the German fashion sector: Gerry Weber folds after Kaufhof and Esprit experiences difficulties

Troubled fashion brand based in Halle/Westfalen announces its closure on Friday, with Spanish company Victrix set to assume control moving forward.

Struggling Halle/Westfalen fashion brand announces its shutdown on Friday. Spanish firm, Victrix...
Struggling Halle/Westfalen fashion brand announces its shutdown on Friday. Spanish firm, Victrix Group, to acquire the bankrupt business, leaving the future uncertain.

Struggles in the German fashion sector: Gerry Weber folds after Kaufhof and Esprit experiences difficulties

German Mid-Range Fashion Market Faces Reckoning

The German mid-range fashion market is confronting a crisis, as exemplified by the recent announcement of Gerry Weber's store closure plan. The East Westphalian fashion manufacturer, once a prominent player in women's fashion, is set to close around 40 stores in Germany, including six in Berlin.

After filing for insolvency in 2023, Gerry Weber had already closed 122 of its 171 branches. The company's final chapter appears to be in sight. However, the brand will not disappear entirely. The Spanish Victrix Group, owner of Punt Roma, has acquired the rights to Gerry Weber and plans a revival of the women's fashion brand using its own structures. The details of the agreement remain confidential.

Gerry Weber's struggle is part of a broader crisis in the German fashion industry. The company's financial difficulties are thought to be largely due to economic stagnation, increased competition from fast fashion brands, supply chain pressures, and slower adaptation to technology. These challenges have manifested in the insolvencies of department store chains such as Galeria and fashion retailers like Esprit and Sinn.

The Victrix Group, with its fashion brand Punt Roma, is taking over Gerry Weber's entire production. The Spanish women's wear provider had previously announced ambitious plans to expand in Germany. However, all existing stores in Germany and other European countries are expected to close in the coming months. Customers can continue buying Gerry-Weber clothing in the future, with the Victrix management ensuring a seamless transition for traders and customers.

The future of luxury department stores also seems uncertain, with the Breuninger chain reportedly up for sale. The fashion industry is undergoing transformation due to economic uncertainty and changes in consumer behavior. These factors have significantly impacted brick-and-mortar textile and fashion retailers, bringing many businesses to the brink of collapse.

Despite the challenges, the Berlin fashion scene is gaining recognition. International fashion magazines are increasingly interested in Berlin Fashion Week, signaling a shift in the appreciation of German fashion. This transition, however, comes at a critical juncture for the industry, as mid-range fashion brands like Gerry Weber face an uncertain future.

  1. The Spanish Victrix Group, after acquiring the rights to Gerry Weber, plans to use their own structures of a kind used in their fashion-and-beauty line, Punt Roma, to revive Gerry Weber as a women's fashion brand in the retail sector.
  2. The broader crisis in the German fashion industry is not limited to mid-range players like Gerry Weber, and has also affected other players, such as department store chains and fashion retailers, resulting in business stagnation and insolvencies.
  3. Amidst the turmoil in the German fashion industry, there is a shift in the appreciation of German fashion, with international fashion magazines taking notice of the Berlin fashion scene, particularly at Berlin Fashion Week, signifying a potential transformation in the lifestyle segment.

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