2023-10-06 08:22:00
The furniture chain is restarting following bankruptcy with 1,953 employees (1,770 full-time equivalents) in 17 furniture stores, logistics locations, restaurants and central administration. However, a “rebranding” in the former kika and Leiner locations will “not be implemented for the time being”.
“Our goal is to stabilize kikaLeiner in the current difficult economic situation and lead it into a good future,” explained Volker Hornsteiner, who has been a member of the management of Leiner & kika Möbelhandels GmbH since July this year in the areas of sales, human resources and Marketing and communication is responsible. “And in three years no one should be talking regarding 2023 and the restructuring process, but only regarding kikaLeiner, which is smaller but better than ever before,” the manager added.
According to the information, the furniture retail chain wants to focus more on its own brands in the future, “which already have a good share of sales”. “This share should be expanded further,” announced Hornsteiner.
In the last week of September, the vast majority of the over-indebted company’s creditors approved the restructuring plan offered. The more than 500 creditors will receive a quota of 20 percent within two years to settle their claims. The liabilities to be taken into account amounted to 131.6 million euros, of which 49.6 million euros were attributable to the tax office.
The creditor protectors were satisfied with the restructuring plan and the Signa settlement. The approval was “the best possible economic decision to give the company the chance to achieve a sustainable restructuring under the leadership of the new owner and to maintain the 1,770 jobs,” said the head of corporate insolvencies Vienna/Lower Austria/Bgld at KSV1870, Brigitte Dostal , commented on the process. Due to “the professional work of the insolvency proceedings bodies”, there is a “respectable quota” of over 30 percent for the creditors and more than half of the jobs have been retained, according to Creditreform managing director Gerhard Weinhofer. If the company had been broken up, the overall ratio would have been only around 6.6 percent.
Shortly following the sale of the operational Kika/Leiner business by the Signa real estate group to the Austrian trade manager and investor Hermann Wieser, the furniture chain filed for bankruptcy in mid-June this year. The Graz Supernova Group bought the furniture store properties.
As part of the insolvency proceedings, a total of 23 of the 40 branches were closed at the end of July and over 1,600 jobs were cut. With the approval of the creditors on September 25th, the cancellation of the insolvency will become legally binding in mid-October 2023 – following the corresponding appeal period of three weeks.
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