June 2, 2020 / 7:31 AM / a month ago

BRIEF-Gerry Weber To Cut 200 Jobs, Says Creditors Agreed To Defer Claims

June 2 (Reuters) - GERRY WEBER INTERNATIONAL AG:

* HAS RECEIVED APPROVAL FOR ITS NEW CONCEPT TO DEAL WITH THE CONSEQUENCES OF THE CORONA CRISIS

* AS CORNERSTONE OF THE CONCEPT, COMPANY HAS RECEIVED A CONTRIBUTION IN FORM OF TEMPORARY DEFERRAL FROM MAJORITY OF ITS FORMER INSOLVENCY CREDITORS

* ALL SHOPS IN GERMANY ARE OPEN AGAIN

* FUTURE CONCEPT HAS BECOME NECESSARY AFTER ALMOST ALL OF COMPANY’S RETAIL SPACE HAS BEEN CLOSED FROM MID-MARCH 2020 AS RESULT OF EFFECTS OF CONTAINING COVID 19 PANDEMIC

* CREDITORS HAVE OVERWHELMINGLY APPROVED CONCEPT, IN WHICH THEY BASICALLY DEFER 35 PERCENT OF THEIR CLAIMS UNTIL DECEMBER 31, 2023, WHICH ARE THEN TO BE PAID BACK TO THEM

* SO-CALLED PLAN SPONSORS, AS OWNERS OF THE COMPANY, MADE BINDING COMMITMENT TO SUPPORT AND MAKING CONTRIBUTIONS TO RESTRUCTURING OF COMPANY

* IN ADDITION TO THE PARTIAL DEFERRAL OF CLAIMS BY CREDITORS, THE FUTURE CONCEPT PROVIDES FOR THE REDUCTION OF MORE THAN 200 JOBS

* CLOSING OF RETAIL SPACE DUE TO COVID-19 PANDEMIC HAS RESULTED IN IRRETRIEVABLE LOSS OF SALES OF WELL OVER EUR 100 MILLION

* IN ADDITION, CONTRACTS HAVE BEEN RENEGOTIATED WITH BUSINESS PARTNERS AND SUPPLIERS WITH THE AIM OF SECURING THE COMPANY’S LIQUIDITY Source text for Eikon: Further company coverage: (Gdansk Newsroom)

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