Retail chain Libro wants to close 34 branches; the MTH Group prefers the Pagro brand. About 120 employees are likely to be affected by the plans.
The good times for Libro’s office supply chain, founded by Billa founder Karl Wlaschek, have been a long time coming. The group used to have 250 branches, but now there are only 180. The chain had to be renovated at some point and around the turn of the millennium it came under the umbrella of the MTH group of the recently deceased industrialist and ex-ÖVP politician Josef Taus. . There will likely be some closures again this year.
34 locations are shaking, probably 120 employees are affected, reports ‘Standaard’. However, many of them will probably find shelter at Pagro. The chain is expected to continue to grow strongly in the future; last year, another 90 locations were added.
Libro branches too small and too expensive
The reason for the rigid savings is the high costs; the group has been struggling with declining profits for years. Many of the Libro branches no longer fit the concept of owner MTH, are too small and some of them are no longer profitable. In addition, the group is faced with the usual problems in retail, such as high staff costs and rental prices and poor consumer confidence.
Also withdrawal from Germany
The group is also withdrawing in Germany. There, the discount chain Pfennigpfeiffer with 84 branches is transferred to competitor Tedi. The focus is now on Austria and Switzerland. This country is the market leader in stationery. A complete end to the Libro brand is not planned – at least for the time being.
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.
