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MarketScreener Homepage  >  Equities  >  Xetra  >  Gerry Weber International AG    GWI1   DE0003304101

GERRY WEBER INTERNATIONAL AG

(GWI1)
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Gerry Weber International : reaches agreement on key aspects for future-securing col­lect­ive wage agreement as well as re­con­cili­ation of interests and social plan

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04/05/2019 | 12:02pm EDT
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GERRY WEBER reaches agreement on key aspects for future-securing col­lect­ive wage agreement as well as re­con­cili­ation of interests and social plan

April 05, 2019

  • Next milestone in the ongoing restructuring and repositioning process
  • Closure of around 120 stores and sales spaces in Germany
  • Redundancy of 454 FTE in Germany

GERRY WEBER has reached agreement with employee representatives on key aspects of the further implementation of the ongoing restructuring of the group. Corresponding agreements were signed for employees of GERRY WEBER International AG (GWI) and GERRY WEBER Retail GmbH & Co. KG (GWR), as well as employees of Life-Style Fashion GmbH (Wholesale Business). The agreements govern the future collective wage agreement to secure the future of GERRY WEBER, as well as the reconciliation of interests and social plan for the implementation of the planned restructuring measures.

The agreements are another milestone in the ongoing restructuring and repositioning of GERRY WEBER Group. They significantly contribute to providing the company with a future perspective, not least because of the considerably lowered cost base. Measures in line with the agreements will be implemented immediately and are expected to continue until the planned closure of the repositioning by the end of 2021.

'Indispensable restructuring measures strengthen momentum in the market'

Florian Frank, Member of the Managing Board of GERRY WEBER International AG and Chief Restructuring Officer comments: 'After hard but always fair negotiations with the employee representatives we quickly reached agreement on a collective wage agreement securing the future of GERRY WEBER, as well as the reconciliation of interests. On this foundation, we are confident to be able to lead GERRY WEBER back on the road to success.' Johannes Ehling, Spokesman of the Managing Board of GERRY WEBER International AG adds: 'Particularly in retail, we can feel that we are gaining momentum in the market as result of the already implemented repositioning measures. The effects of the unfortunately indispensable restructuring measures will certainly further strengthen this momentum.'

The agreements on reconciliation of interests contain the following key aspects:

  • Redundancy of 145 FTE (Full Time Equivalents)
  • Closure of around 120 stores and sales spaces in Germany
  • Redundancy of a corresponding number of 309 FTE in stores

To limit economic disadvantages, suitable measures shall be provided for affected employees in the social plans (severance payments and, where appropriate, also transfer measures).

The stated numbers only apply to the German subsidiaries of GERRY WEBER Group. The company continues to follow its initial restructuring plan, which includes the planned closure of around 180 stores (excluding HALLHUBER) and redundancy of a corresponding number of FTE across Europe.

Return into regional collective wage agreement scheduled for 1 April 2022

The agreement on a collective wage agreement to secure the future contains the following key aspects:

  • Suspension of annual special payments and holiday pay throughout the ongoing business year; gradual reinstatement of annual special payments as well as of holiday pay as of 2020
  • Return into regional collective wage agreement as of 1 April 2022
  • Implementation of payment increases according to the regional collective wage agreement for 2019 and 2020 with a delay of three months

Dr. Christian Gerloff, Chief Representative of GERRY WEBER International AG, comments: 'The agreement with the employee representatives provides potential investors searching for a future solution for GERRY WEBER Group with substantial planning security. For this reason, it is good and important, that agreement was found so quickly.'

Continued financing of operations is safeguarded until 2020

On 25 January 2019, GERRY WEBER International AG applied for the court order of preliminary insolvency proceedings under self-administration. On 1 April 2019, the local court Bielefeld ordered the scheduled opening of insolvency proceedings under self-administration. The court appointed lawyer Stefan Meyer of PLUTA Rechtsanwalts GmbH as trustee (Sachwalter), who was previously already appointed provisional trustee. Chief Representative of GERRY WEBER remains Dr. Christian Gerloff, an experienced expert in the fashion industry. The opening of insolvency proceedings under self-administration for 100% subsidiary GERRY WEBER Retail GmbH & Co. KG is scheduled for May 2019. Within the scope of the ongoing proceedings, parts of the restructuring measures package announced in 2018 can be implemented quicker and more efficiently than initially planned. Continued financing of operations is safeguarded until well within 2020.

Trustee Stefan Meyer comments: 'GERRY WEBER Group is on a good track to reaching its restructuring targets. I am very pleased, that the hard, but always responsibly lead negotiations found a balanced result for reconciliation of interests/redundancy scheme and the collective wage agreement. I would like to thank the negotiation partners of the works council, the union representatives of IG Metall and the management for the constructive and farsighted solutions.'

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Disclaimer

Gerry Weber International AG published this content on 05 April 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 05 April 2019 16:01:13 UTC

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Financials (€)
Sales 2018 800 M
EBIT 2018 -18,4 M
Net income 2018 -
Debt 2018 201 M
Yield 2018 -
P/E ratio 2018 -
P/E ratio 2019 1,56
EV / Sales 2018 0,27x
EV / Sales 2019 0,26x
Capitalization 17,5 M
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Mean consensus UNDERPERFORM
Number of Analysts 5
Average target price 1,23 €
Spread / Average Target 224%
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NameTitle
Ernst Friedrich Schröder Chairman-Supervisory Board
Jörg Stüber Chief Financial Officer
Gerhard Weber Vice Chairman-Supervisory Board
Udo Hardieck Member-Supervisory Board
Charlotte Weber-Dresselhaus Member-Supervisory Board
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