The story about the bankrupt furniture store chain Kika/Leiner has a new chapter. The creditors voted on Monday to proceed and will receive a total of 34 percent of their claims, with the rest to be written off. There remain 17 branches with currently 1,953 employees.
First the good news: Kika/Leiner will continue with 17 branches in the future (previously 40). The proposed restructuring plan was accepted by more than 500 creditors at the St. Pölten Regional Court. Within two years you will receive a quota of 20%.
In addition, the Signa Group, which recently sold Kika/Leiner, has paid €20 million into the ‘restructuring pot’ as a settlement to resolve any further claims. The bottom line is that this means a quota of 34% for creditors (including the state with outstanding tax claims amounting to € 49.6 million). “A respectable result,” says creditor protector Gerhard Weinhofer (Creditreform). The bankruptcy will then be formally ended in three weeks.
The state must ‘write off’ approximately €33 million
The bad news: Suppliers etc. are stuck with almost two-thirds of the claims. As the largest creditor, the state must ‘write off’ approximately €33 million. And of the 3,900 employees, only 1,953, or almost exactly half, are left. Not only the majority of the employees in the 23 branches were closed, but also 118 catering employees and numerous employees at the head office and logistics were dismissed. More than 200 people voluntarily turned their backs on the furniture dealer – and some of them are now missing. “Currently 50 to 100 people are being sought,” said Kika/Leiner spokesman Michael Slamanig, who sees creditor approval as a “milestone.”
Now everything is being done to remain attractive to customers in the future. Individual measures (e.g. free financing for 60 months, adjustment of the range) have already been implemented. What will happen next (for example, whether the two brands Kika and Leiner will remain) and what the realignment will look like will be presented soon.
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.
