Expert Opinion affirms good prognosis for the restructuring of
(Halle/Westphalia, 18 October 2018) The draft of the restructuring opinion in line with Standard S6 (IDW S6), to verify the company's capability for a successful restructuring and to support the current substantial transformation process, commissioned by GERRY WEBER International AG, concluded with a positive prognosis. According to the opinion, the fundamental core business model of GERRY WEBER Group is sustainable and viable for the future. The extensive restructuring measures proposed by GERRY WEBER and confirmed by auditing firm Ebner Stolz, continue the currently implemented Performance Program and will substantially exceed it in parts. Currently, GERRY WEBER is 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. In parallel, necessary operational and structural restructuring measures were already launched.
Deep cuts expected
"Firstly, we are glad to receive the confirmation, that our core business model is successful and viable for the future", said Ralf Weber, outgoing CEO of GERRY WEBER International AG. "We will however have to account for the dramatic changes in our markets and the strongly changing purchase behavior of our customers. This will inevitably result in deep cuts both in personnel as well as the corporate structure", Weber continued. "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 Florian Frank, Member of the Managing Board and Chief Restructuring Officer. "At the current stage of the dialogue, we are very confident to successfully and sustainably restructure first our financing and then the entire company", Frank said.
Johannes Ehling, Member of the Managing Board and designated Spokesman of the Managing Board, commented: "I am absolutely convinced, that we will return to the road to a prosperous future after our successful restructuring. With our core business model, our strong brands and in particularly our excellent team, we are ideally positioned for that. Despite all uncertainties posed by the restructuring process, it can be felt in many places, that our transformation with the Performance Program reaches our customer, business partners and employees. This encourages us, and this is what we work hard for every day."
GERRY WEBER International AG will continue to report about the progress of the ongoing transformation and restructuring in a timely manner.
About the GERRY WEBER Group
GERRY WEBER International AG, headquartered in Halle/Westphalia, operates on a global scale and unites five strong fashion brands under one roof: GERRY WEBER, TAIFUN, SAMOON, talkabout and HALLHUBER. Since its beginning in 1973 GERRY WEBER International AG, which is listed in the Prime Standard of the German Stock Exchange, has become one of the best known German fashion and lifestyle companies with approximately 1,230 company-managed stores and sales spaces (incl. 410 from HALLHUBER), approximately 2,480 shop-in-shops and 280 franchised stores worldwide as well as brand online-shops in nine countries. With some 6,500 employees worldwide (including about 2,065 from HALLHUBER) and distribution channels in roughly 60 countries, the GERRY WEBER Group is one of the largest listed fashion companies in Germany.
In the financial year 2016/17 (1 November 2016 to 31 October 2017) the GERRY WEBER Group generated sales revenues of EUR 880,9 million and operating income (EBIT) in the amount of EUR 10.3 million. The HALLHUBER subsidiary, which was acquired in February 2015, contributed EUR 194.3 million to GERRY WEBER Group sales.
The Managing Board consists of Ralf Weber (CEO), responsible for the departments Corporate Development, Strategy, Procurement and Logistics, the Strategic Business Units (SBUs) "GERRY WEBER/talkabout" and "TAIFUN/SAMOON" as well as for the departments Finance, Controlling, Central Purchasing, Compliance, Investor Relations and HR. Johannes Ehling (CSO-CDO) is in charge for the national and international distribution channels (Wholesale, Retail and E-Commerce), IT and the digital strategy of the GERRY WEBER Group as well as for the HALLHUBER SBU. Florian Frank (CRO) is responsible for the development and implementation of the restructuring and transformation program as part of the strategic repositioning of GERRY WEBER Group.
GERRY WEBER International AG
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