After the sale of furniture chain Kika/Leiner by Signa Retail, all other options are being investigated. A possible insolvency procedure is also in the room. The decision on this should be made next week.
“Such a question will also be looked at. Of course, all options will be explored in the course of the analysis,” said Kika/Leiner spokesman Michael Slamanig on Wednesday. “A decision will be made next week.”
On Tuesday, the new owner of the furniture chain announced that it would close 23 of its 40 locations at the end of July and lay off 1,900 of its 3,900 employees. The central departments and administration are also being “significantly” reduced.
No profit made in recent years
After almost five years as owner, the Signa Retail Group also sold the Kika/Leiner real estate for an unknown price to the Supernova Group of the German specialist retailer Frank Albert last week. The furniture store had not made a profit for Signa in the past five years. The furniture chain was taken over with an operating loss of more than 150 million euros and to cover the running costs, the liquidity needs are around 8 to 10 million euros per month with declining sales, the new owner Wieser explained on Tuesday.
Balance sheet loss of 106 million euros
Kika/Leiner’s debts would amount to around 300 million euros. Over the years, Kika and Leiner had incurred a balance loss of 106 million euros and 83.7 million euros respectively at the end of September 2021, according to the trade register. More recent figures are not yet available.
All orders executed as ordered
The new management of the furniture chain is now trying to calm restless customers. “The down payments at Kika/Leiner are insured. Customers need not worry. All orders will be executed as ordered,” said the Kika/Leiner spokesperson.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
