Kika/Leiner Furniture Chain Files for Bankruptcy, Leaving Customers and Employees in the Lurch
The Austrian furniture chain Kika/Leiner has filed for bankruptcy, marking a devastating end for the company after years of financial struggles. The closure will result in the shutdown of all 17 remaining branches and the loss of 1,350 jobs.
"Leiner & Kika Möbelhandels GmbH will now have to be wound up in bankruptcy. This means that at the end of a structured liquidation process, the 17 existing branches will have to be closed and 1,350 employees will also lose their jobs," confirms KSV expert Jürgen Gebauer.
Employees have already begun receiving payments from the insolvency remuneration fund.
However, the bankruptcy’s repercussions extend far beyond the immediate impact on employees. Thousands of customers who placed deposits or orders for furniture now face an uncertain future. Though the insolvency administrator, Leitner, is working diligently to identify which orders can be fulfilled under bankruptcy law provisions, many customers are bracing for substantial financial losses.
"It had to be determined that there are many hardship cases among the injured customers. Unfortunately, insolvency law does not provide for any exceptions or leeway for this," Leitner said.
Those affected are likely to receive only a small fraction – possibly a single-digit percentage – of the money they paid for kitchens or furniture back in the bankruptcy proceedings. Kika/Leiner announced they will be unable to honor the initially promised 20% renovation rate.
Customers with outstanding deposits can register their claims as bankruptcy claims at the St. Pölten regional court.
Amidst the distress, Leitner issued a plea to customers to direct their frustration towards the situation, not the employees.
“As an insolvency administrator, I therefore ask you not to express the displeasure – which is understandable to everyone – towards employees of the company, as has unfortunately often been noted in the last few days,” said Leitner. "The employees cannot be blamed for this situation and the company’s insolvency. Rather, they themselves are affected as victims.”
The Kika/Leiner furniture chain has struggled for years, with three changes of ownership since 2013. In 2023, René Benkos Signa sold the Kika/Leiner properties to Graz Supernova and the operational furniture business to trading manager Hermann Wieser. Shortly after the sale, the company filed for bankruptcy, leading to the closure of 23 out of 40 branches.
What are the potential implications for customers who placed orders with deposits prior to Kika/Leiner’s bankruptcy?
## Leiner & Kika Closes, Leaving a Trail of Uncertainty
**Host:** We’re here speaking with **[Guest Name and Title]**, a [Guest Expertise] about the recent bankruptcy of the Austrian furniture chain Kika/Leiner. This news has sent shockwaves through the retail sector and beyond. [Guest Name], can you give us some insight into what led to this point?
**Guest:** Unfortunately, Kika/Leiner has been struggling financially for some time. As reported by KSV, Austria’s leading credit protection agency, [[1](https://www.ksv.at/presse/laufende-insolvenzfaelle/update-leiner-kika-moebelhandels-gmbh-glaeubigerinformation)], a formal insolvency process has now begun. This means all 17 remaining branches will close, impacting 1,350 employees and countless customers with outstanding orders.
**Host:** That’s a devastating blow to so many people. What about the customers who have already placed orders and made deposits?
**Guest:** Right now, the situation for customers is uncertain. While the insolvency administrator, Mag. Volker Leitner, has been appointed [[1](https://www.ksv.at/presse/laufende-insolvenzfaelle/update-leiner-kika-moebelhandels-gmbh-glaeubigerinformation)], the process of potential refunds will take time.
**Host:** It sounds like a difficult and complex situation unfolding. What are the broader implications of this bankruptcy for the Austrian retail sector, particularly in the furniture industry?
**Guest:** This sends a strong signal that even well-established companies are not Immune to economic challenges. The furniture industry has been facing headwinds like rising material costs and shifts in consumer spending habits.
**Host:** Thank you, [Guest Name], for providing crucial insights into this developing story. The closure of Kika/Leiner clearly has far-reaching consequences, and it will be important to follow the developments closely in the coming weeks and months. We’ll continue to update our viewers on this story as events unfold.