After the bankruptcy of furniture giant Kika/Leiner, many customers will lose their vouchers and credits. Their anger is now being felt by workers, who themselves are losing their jobs. In addition to insults and outbursts of anger, there have even been physical attacks. The company has responded and now employs security guards at all locations.
Many customers are – rightly – very upset. Anyone who has made a deposit or still has vouchers in the drawer at home will almost certainly be able to write off the majority of them. The employees of the ailing furniture retailer now have to bear this dissatisfaction. Those affected express their anger on the spot and insult or even attack the staff, who, as we all know, will soon lose their jobs themselves. Guards have now been deployed in all eleven Kika and six Leiner stores (see image below) to protect staff from attacks, some of which are said to be “very serious”. Consumer advocates and attorneys advise caution here as the staff cannot do anything about the bankruptcy.
What Kika/Leiner customers can actually do
In case of bankruptcy, vouchers are no longer accepted. As for the deposits, the curator will check until the end of the week whether he is still executing the underlying orders or not. The affected customers will be informed about this on Monday.
However, insolvency experts assume that only a small number of customers will actually receive the ordered furniture. All others must register their claim with the trustee. But time is of the essence here. The deadline for this only runs until January 10, 2025. It is also important to consider whether registering a claim makes sense at all. According to the Court Fees Act, this costs 25 euros, explains VKI lawyer Maximilian Eder. Since you will only ultimately get a low, probably single-digit percentage of it back after the estate has been liquidated, it is not worth applying for a 50 or even 100 euro voucher.
Things look a little better for larger deposits that are no longer being fulfilled. For example, if you have paid 5,000 euros in advance for a kitchen, you will receive at least 250 euros back with a possible repayment percentage of 5 percent, minus the reimbursement of 25 euros, followed by 225 euros. At least that’s better than nothing.
About a third of deposits are secured with “gravel protection.”
However, those whose deposits are protected with so-called ‘gravel protection’ have virtually nothing to worry about. Hermann Wieser, owner of Kika/Leiner, introduced this shortly after the acquisition and initial restructuring of the company. The “gravel protection” protects the prepaid money and all affected customers will receive their deposit back. Legally speaking, this is a right to divorce. It is said that approximately a third of all deposits at Kika/Leiner are protected in this way.
The closure of branches is planned for the end of January, sales bonus for employees
The (heated) sale at the locations is expected to run until the end of January. The goal is to finally lower the scroll bars. However, one or two locations may still be open in February. Employees keep their jobs for as long as necessary. But if the branch closes, the shop floor is also a thing of the past. However, it is said that a “sales bonus” is still planned for them.
Kika/Leiner suppliers protected by insurance
There is good news for the suppliers of the bankrupt furniture retailer after the bankruptcy. Your claims are protected by a so-called ‘delkredere insurance’, which comes into effect if, for example, your business partner becomes insolvent. So you may not suffer any damage – apart from the loss of Kika/Leiner as a customer.
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.
