- Prachi Singh |
The troubled fashion retailer, Gerry Weber International Ag currently employing around 6,500 people expects further redundancies as a part of its restructuring process after the company sought the restructuring opinion to verify the company's capability for a successful restructuring and to support the current substantial transformation process. The company said, according to the opinion, the fundamental core business model of Gerry Weber Group is sustainable and viable for the future.
However, the company’s outgoing CEO Ralf Weber said in a statement: "We are glad to receive the confirmation, that our core business model is successful and viable for the future. We will however have to account for the dramatic changes in our markets and the strongly changing purchase behaviour of our customers. This will inevitably result in deep cuts both in personnel as well as the corporate structure."
The fashion company from Halle in Westphalia having a portfolio of brands including the core brand Gerry Weber as well as the Hallhuber, Samoon and Typhoon has been witnessing a downward sales and profit trend for some time. The company added that it is currently engaged in a constructive dialogue with its financing partners, to ensure the ongoing financing of the group and to place it on a sustainable foundation.
"The expert opinion, combined with the ongoing Performance Program, provides us with the greatest possible transparency for the dialogue with our financing partners and the ongoing restructuring process," added Weber.