Gerry Weber International AG confirmed today it has applied for preliminary insolvency proceedings under self-administration at the responsible local court Bielefeld, aiming at successfully restructuring the company through the ongoing restructuring program. The application was approved by the local court Bielefeld. The preliminary insolvency exclusively applies to the mother company Gerry Weber International AG with about 580 employees; all subsidiaries including Hallhuber are excluded from the proceedings.

Within the scope of the preliminary self-administration, business operations of Gerry Weber International AG are continued entirely at normal course. According to the current status, the continued financing of operations is safeguarded until the year 2020. The Managing Board remains in office with all powers and responsibilities, ensuring operations. For support, the Managing Board consults the insolvency law experienced and in the fashion industry very well-versed self-administrator and reorganization expert Christian Gerloff, Gerloff? Liebler Rechtsanwälte. In the function of a General Representative, he will coordinate in particular with regard to procedural and insolvency law issues. The local court has appointed lawyer Stefan Meyer, PLUTA Rechtsanwalts GmbH, a restructuring expert with experience in both the industry and insolvency law as provisional trustee (Sachwalter). The staff is immediately informed about the preliminary proceedings. All pay claims of employees are guaranteed by the instrument of insolvency payment.

Sustainable financing of the group failed

The application for the court order of preliminary proceedings under self-administration was triggered by failed talks of Gerry Weber Group with its financing partners. Negotiations were held, aimed at permanently guaranteeing group financing and setting it on a consistent and sustainable foundation. With failure of the negotiations, the application has become inevitable.

"Unfortunately, the application for the court order of preliminary proceedings under self-administration has become inevitable", commented Johannes Ehling, Spokesman of the Managing Board of Gerry Weber International AG. "Up to the last moment there were major efforts, to avert the proceedings. I am absolutely convinced, that after the successful restructuring we will return from the proceedings back to the path to success. With our core business, our strong brands and especially our outstanding team we are ideally positioned for this. Despite the initial disappointment, related to the opened proceedings under self-administration, we can feel, that our restructuring measures and the Performance Program are well received by customers, business partners and employees. This encourages us and this is what we continue to work hard for every day", continues Ehling.