// Gerry Weber begins insolvency proceedings after financing talks breaks down
// 580 staff at risk
// Retailer assures it is safeguarded until at least 2020
Gerry Weber has applied for the court order of preliminary insolvency proceedings under self-administration after talks with its finance partners broke down.
The requested preliminary insolvency exclusively applies to the parent company Gerry Weber International AG, which employs around 580 staff and puts their jobs at risk.
The self-administration aspect of the proceedings means Gerry Weber’s managing board will remain in office with all powers and responsibilities, pending the court’s approval.
Gerry Weber’s subsidiaries, including Hallhuber and Samoon, are excluded from the request as no application was made.
The German fashion retailer, which trades in various countries including the UK, said in a statement on its investor relations website that the failed negotiation talks with financing partners had been aimed at guaranteeing financing and setting it on a consistent and sustainable foundation.
Gerry Weber added that within the scope of the preliminary self-administration, business operations would be continued.
It added that according to its current status, the continued financing of operations is safeguarded until the year 2020.
The news comes after Gerry Weber, amid declining sales and mounting losses, struggled to turn around the business despite various efforts to do so.
Earlier this year, the retailer said that it predicted its full-year pre-tax losses would widen to more than €192 million in the current financial year.