Gerry Weber to close 120 stores in Germany, 454 jobs to go
today Apr 8, 2019
Struggling German fashion brand Gerry Weber is to close 120 stores in Germany and cut 454 jobs, including 300 jobs in its stores and over 100 roles at its head office. It comes after it reached an agreement with employee representatives on Friday, the company announced. The layoffs will take place “immediately”, it said, and will continue until the end of the restructuring process in 2021.
The affected staff will receive severance pay and other support. Additionally, the company has announced plans to cut its year-end bonus and holiday pay for the the current financial year for all employees. But it insisted it has enough funding to continue operating until 2020. Across Europe, a total of 180 stores are in the firing line, putting hundreds of jobs at risk of redundancy.
Gerry Weber’s restructuring measures have already started bearing fruit, CEO Johannes Ehling said. “The effects of the unfortunately crucial restructuring measures will certainly further strengthen this momentum,” he said.
Gerry Weber parent company Gerry Weber International, which employs 580 people, filed for insolvency under self-administration in a court in Bielefeld, Germany in January with the aim of restructuring the business.
The move only affected the parent company and its brand Taifun and Samoon. The wholly owned subsidiary Gerry Weber Retail is scheduled to file for insolvency under self-administration in early May, the company said.
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