The story surrounding the bankruptcy of the ailing furniture chain kikaLeiner has a new chapter: as the company announced today in a press release, the restructuring has failed. Another insolvency application was filed. Management has done everything humanly possible to ensure the company’s continued existence, it said in a statement. The future of the company now lies in the hands of the insolvency administrator Volker Leitner. He did not want to make a statement when asked by OÖNachrichten on Tuesday afternoon.
As reported, the furniture chain ended the last financial year with losses. The number of employees was reduced to 1,400, there are still 17 branches, two of which are kika locations in Upper Austria (Linz-Urfahr and Ansfelden). The number of employees in Upper Austria was reduced from 179 to 144 in the past financial year; before the bankruptcy it was 401.
Volker Hornsteiner, a member of the management team, emphasized in an interview with OÖNachrichten a month ago that the company wants to complete the restructuring in September 2025. “We are all working hard and entering the second year of the renovation with great commitment,” he said.
kikaLeiner’s restructuring plan was adopted in September 2023. The creditors received or are receiving 20 percent of the claims; ten percent within 14 days, five percent within 16 months and five percent within 24 months, i.e. by September 2025.
Economic Commentary: Capsized
Signa bankruptcies unsettled customers
The insolvency proceedings last year apparently caused lasting damage to the brand, according to the statement sent out today. In addition, the Signa bankruptcies have repeatedly led to rumors and customer inquiries as to whether kikaLeiner is also affected.
The general reluctance to buy over a period of around two years would have made rescuing kikaLeiner an unmanageable task. The cost increases in all areas, as well as in the last collective bargaining negotiations, would have kept the company’s creative freedom extremely limited.
Union advises employees: “Don’t sign anything”
The furniture retailer apparently cannot continue operations, according to a statement from Michael Pieber, managing director of the GPA Lower Austria union, where the furniture chain is based. His advice to employees: “Don’t sign anything, don’t take any arbitrary steps, don’t quit. You could lose out on claims.”
The union will now advise employees in close cooperation with the Chamber of Labor. In the event of insolvency, the insolvency compensation fund takes over the payment of outstanding claims.
ePaper
**Interview with Volker Hornsteiner, Member of the Management Team of kikaLeiner**
**Editor**: Thank you for joining us today, Volker. The news of kikaLeiner’s failed restructuring and the new insolvency application is concerning. Can you summarize what led to this point?
**Volker Hornsteiner**: Thank you for having me. The landscape for kikaLeiner has been challenging. We faced significant losses in the past financial year, and our attempts at restructuring were hindered by a prolonged reluctance to buy from customers, partly stemming from the public’s perception after the Signa bankruptcies. Cost increases and limitations from recent collective bargaining negotiations further restricted our ability to adapt.
**Editor**: It’s clear that the external environment has had a profound impact. What has been the response from your remaining staff during this turbulent time?
**Volker Hornsteiner**: I must commend our team. Despite the tough circumstances, our employees have shown remarkable resilience and commitment. However, I understand that uncertainty weighs heavily on them. That’s why the union’s advice to refrain from making impulsive decisions is crucial. They need to be aware of their rights during this process.
**Editor**: The statement mentioned that management had done everything possible for the company’s survival. Can you shed some light on the specific efforts taken during the restructuring?
**Volker Hornsteiner**: Absolutely. We focused on cutting costs and streamlining operations, which included reducing our workforce from 401 employees to 1,400 and closing several underperforming branches. We believed that completing the restructuring plan by September 2025 would give us a path forward, but unfortunately, that timeline has now been compromised.
**Editor**: With the insolvency now in the hands of Volker Leitner, the insolvency administrator, what can you share about the next steps for kikaLeiner and its employees?
**Volker Hornsteiner**: At this stage, the insolvency administrator will assess the situation and decide on the best course of action. We can only advise employees to stay informed and patient. The union and the Chamber of Labor are working closely with us to ensure their rights are protected. There’s still hope for a resolution that allows us to stabilize operations, but it will require cooperation from all involved.
**Editor**: Thank you, Volker, for your insight during this difficult time. We hope for a favorable outcome for kikaLeiner and its employees in the near future.
**Volker Hornsteiner**: Thank you for the opportunity to share our situation. We appreciate the support of the community and hope to navigate through this challenging period.