Polish discount giant Pepco will soon close its doors in Austria. The company will cease all business activities in Austria and will file for bankruptcy next week.
680 employees in 73 branches are affected. According to Standard, the company justifies this move by saying that “the expected level of returns” cannot be achieved in Austria.
Pepco only entered Austria two and a half years ago, when it took over the majority of the stores of shoe chain CCC. The company offers clothing, toys, household items and furniture at low prices.
Despite efforts there was no success
Despite “several initiatives and structural changes” to “address unacceptable operating performance,” Pepco continued to incur losses, the company wrote. For this reason, they will withdraw from Austria and concentrate on markets where there are better return opportunities.
The company said it will file for bankruptcy “in the coming days.” The shops must remain open for the time being. According to “Standard”, the staff in Austria has already been informed about the planned bankruptcy.
Internationally, Pepco achieved record turnover
Headquartered in the city of Poznań, the company currently employs more than 31,000 people in 19 European countries and has a network of more than 3,600 stores. Internationally, the Pepco Group achieved sales records in the 2022/2023 financial year. Turnover increased by more than 17 percent to 5.65 billion euros as a result of numerous new openings. However, net profit fell by 41 percent to 102 million euros.
Source: Krone
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