The Kika/Leiner furniture store has to file for bankruptcy again. The court application is expected on Thursday. Customers with vouchers that are still open should therefore redeem them quickly – because as soon as insolvency proceedings are opened, the company will no longer accept them. “We would advise consumers to try to redeem vouchers now,” says lawyer Maximilian Eder from the Association for Consumer Information (VKI).
It is not certain whether the company will take the vouchers before the procedure opens – “but it would be worth a try,” says Eder. Otherwise, unredeemed vouchers can be filed as an insolvency claim. Please note that you only use the voucher to buy products that you can take with you immediately.
Deposits: Waiting for decision
When it comes to down payments for larger purchases, such as a kitchen, customers still have to wait. The insolvency administrator must decide whether he wants to enter into the contract concluded or not. If he enters into the contract, the customer is entitled to the full goods for which the down payment was made and he pays the full price for them. If the insolvency administrator withdraws from the contract, the down payment becomes an insolvency claim that consumers can register in the process. However, each registration of a claim costs 25 euros, according to the lawyer.
There are still some unanswered questions about bankruptcy. However, tomorrow’s application should clarify whether the company will try to restructure again or whether bankruptcy proceedings will have to be opened. The first figures should then be known about the extent of the debt.
“Existential crisis in the sector”
In a press release yesterday, Tuesday, the company pointed out the poor economic situation and massive cost increases as the reason for the insolvency. Overall, the furniture trade is currently under great pressure, with stationary retail in particular struggling with cannibalization from online retail. “The time for large stationary stores is actually over,” said Vienna retail expert Andreas Kreutzer.
The chief economist of the Association of Industrialists (IV), Christian Helmenstein, even sees an “existential crisis in the sector” that can be attributed to a “needs gap” after the Corona crisis, in which furniture was in high demand, as well as a weakness in apartment and house construction. The industry is also burdened by high costs, for example for energy and personnel.
**Interview with Consumer Rights Lawyer Maximilian Eder**
**Interviewer:** Thank you for joining us today, Maximilian. Kika/Leiner is filing for bankruptcy again. What should customers with outstanding vouchers do at this time?
**Maximilian Eder:** Thank you for having me. It’s crucial for customers with vouchers to redeem them as quickly as possible. Once the insolvency proceedings are initiated, the company will no longer honor these vouchers. I strongly recommend attempting to use them right away if possible.
**Interviewer:** Is there any chance that vouchers might still be accepted after the filing?
**Maximilian Eder:** It’s uncertain. There’s a possibility that the company will still accept them before the proceedings officially open. However, if they don’t, unredeemed vouchers can be treated as an insolvency claim. So, acting quickly is essential.
**Interviewer:** What about customers who made down payments for larger items, such as kitchens? What should they expect?
**Maximilian Eder:** Customers are currently in a holding pattern. The insolvency administrator will decide whether to uphold the contracts for these items. If they do, customers will receive what they paid for. If not, those down payments will become claims in the insolvency process, although it’s worth noting that registering those claims comes with a fee of 25 euros.
**Interviewer:** There seems to be a broader issue within the furniture retail sector. Can you provide insights into the current economic pressures they are facing?
**Maximilian Eder:** Absolutely. The furniture industry is under significant pressure, largely due to factors like soaring costs and competition from online retailers. Experts, including Vienna retail analyst Andreas Kreutzer, suggest that the era of large stationary stores may be coming to a close. Additionally, there’s an “existential crisis” brewing in the sector, as pointed out by Christian Helmenstein from the Association of Industrialists, stemming from a significant drop in demand post-COVID.
**Interviewer:** This paints a rather grim picture. Do you think there’s a way forward for these companies?
**Maximilian Eder:** Restructuring could be one avenue, but it depends on how the ongoing proceedings unfold. The upcoming court application will hopefully shed light on the company’s financial state and their strategy moving forward. The industry will need to adapt to the changing landscape, prioritizing consumer needs and exploring innovative business models to remain viable.
**Interviewer:** Thank you, Maximilian, for your insights. We will certainly keep an eye on how this situation develops.
**Maximilian Eder:** Thank you for having me. It’s important for consumers to stay informed during these times.
