Ermes Department Stores PLC announced that shareholders unanimously approved a special resolution to reduce the company’s issued share capital during an extraordinary general meeting held on Friday.

The approved resolution provides for the reduction of the company’s issued share capital from €59,500,000.00, which is currently divided into 175,000,000 ordinary shares with a nominal value of €0.34 each, to a reduced figure of €59,329,901.40, divided into 174,499,710 ordinary shares of the same nominal value.

This capital reduction is being effected through the cancellation of 500,290 fully paid-up ordinary shares that are currently held as treasury shares by the company.

These treasury shares were originally acquired under approved share buyback programmes conducted between October 8, 2008, and June 30, 2009.

The cancelled shares represent approximately 0.28 per cent of the company’s total issued share capital and carry a total book value of €154,583.00.

The company noted that the implementation of this resolution remains subject to the sanction of the competent court, as stipulated under the relevant provisions of the applicable law.

The capital reduction comes shortly after a major restructuring move by Ermes earlier this month, in which it divested its ERA department store operations to Gencom Group for a nominal fee of €1.

The sale, announced on May 9, 2025, marks a significant shift in the company’s business model as it transitions away from the traditional department store format.

According to company statements, the divestment forms part of a broader effort to streamline operations and reposition Ermes within a more agile and modern commercial framework.

Gencom, the buyer, assumed all operational responsibilities, liabilities, and obligations related to the ERA stores, allowing Ermes to focus on new areas of strategic growth.

In a follow-up statement issued on May 14, 2025, Ermes outlined its post-divestment strategy, emphasising its intention to concentrate on high-performance international brands, lifestyle concepts, and partnerships that align with evolving consumer trends.

The company has reaffirmed its commitment to enhancing its retail portfolio through selective expansion and innovation, while also pursuing efficiencies across its logistics and support functions.

Moreover, Ermes noted that the exit from ERA stores was necessary to ensure long-term profitability and to free up resources that can be reinvested in higher-growth ventures.