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.
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**Interview with Lawyer Maximilian Eder from the Association for Consumer Information (VKI)**
**Editor:** Thank you for joining us today, Maximilian. We understand that Kika/Leiner is filing for bankruptcy once again. What should customers do if they have vouchers that have yet to be redeemed?
**Eder:** Thank you for having me. Customers should act quickly and try to redeem their vouchers as soon as possible. Once the insolvency proceedings are officially opened, the company will no longer accept these vouchers. It’s a good idea to attempt to redeem them before that happens.
**Editor:** You mentioned that there’s uncertainty about whether the company will accept vouchers before the bankruptcy process officially begins. What are your thoughts on that?
**Eder:** Yes, it’s uncertain, but it’s certainly worth attempting. If customers can’t redeem their vouchers, they’ll have to file them as insolvency claims later on. Just keep in mind to only use vouchers for products that can be taken home immediately.
**Editor:** For those who have made down payments on larger items, like kitchens, what should they be aware of?
**Eder:** Customers need to wait for the decision from the insolvency administrator regarding those contracts. If the administrator decides to go forward, consumers will receive their goods but will need to pay the full price. If not, their down payment could become an insolvency claim, which they will need to register, bearing in mind that there’s a fee of 25 euros for each claim registration.
**Editor:** The company’s recent announcement cites poor economic conditions and high costs as contributing factors. Can you elaborate on the current state of the furniture retail sector?
**Eder:** Absolutely, the furniture industry is facing significant challenges. There is a general decline in demand post-Corona because many people furnished their homes during the pandemic. The shift towards online retail is also making it tough for large, brick-and-mortar stores. Experts like Andreas Kreutzer have mentioned that the time for large stationary stores is essentially over, and we’re witnessing what some describe as an “existential crisis” within the sector.
**Editor:** What should consumers keep in mind as this situation develops?
**Eder:** I recommend that consumers stay informed about the situation and act quickly if they have outstanding claims or vouchers. It’s crucial to be proactive right now, as the consequences of this filing could affect many customers in the weeks to come.
**Editor:** Thank you, Maximilian, for your insights. We hope consumers take your advice seriously as this situation unfolds.
**Eder:** Thank you for having me. It’s important for consumers to be prepared.