Insolvent German women’s wear retailer Gerry Weber International has sold a majority stake in its core Hallhuber business to a fund managed by Robus Capital Management.
The move announced today (8 July) sees financial investor Robus Capital take an 88% share in the subsidiary, leaving Gerry Weber with the remaining 12% as well as a cash payment of EUR500,000 (US$561,000) from the investor.
Gerry Weber entered into preliminary insolvency proceedings in January after negotiations with its financing partners broke down, and has since been restructuring its business. The move only applies to the parent company Gerry Weber International, which employs about 580 staff.
In February it granted a purchase option to Robus, in exchange for a bridging loan for Hallhuber, which has since been replaced by long-term financing.
The Gerry Weber Group is one of the largest fashion companies in Germany, with almost 1,270 company-managed stores and sales spaces (including 397 from Hallhuber). Following the sale of Hallhuber, its three core brands are Gerry Weber, Taifun and Samoon.
But in December the group outlined plans to close around 230 retail spaces with the loss of up to 900 jobs, both nationally and internationally, including positions in stores and retail spaces, as well as in centralised functions including logistics.
And in January, the retailer said the losses incurred in its last financial year were wider than it reported in December, reflecting a EUR44.2m (US$50.5m) impairment – the vast majority related to its core Hallhuber brand.