The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Retail Retail Trade, Except Of Motor Vehicles And Motorcycles Retail Sale Of Other Household Equipment In Specialised Stores 47.59 - Retail Sale Of Furniture, Lighting Equipment And Other Household Articles In Specialised Stores
1,350 jobs Number of planned job losses
Announcement Date
12 November 2024
Employment effect (start)
12 November 2024
Foreseen end date
Description
The Austrian furniture retailer Kika/Leiner, based in Sankt Pölten, has filed for insolvency again, having failed to achieve the desired results from its restructuring efforts. Operations have already been significantly downsized, with staff reduced to 1,350 employees across 17 locations. The company stated that rising costs and damage to its brand, worsened by rumours linking it to other Signa insolvencies, were the key reasons.
The restructuring plan, initiated in September 2023, will repay creditors 20% of claims by September 2025. However, ongoing consumer reluctance, heightened by inflation and labour cost increases, hindered recovery.
The GPA union urged employees to seek legal advice before acting, assuring support in cooperation with the Chamber of Labour. The company, which posted losses last year, leaves its future in the hands of insolvency administrator Volker Leitner.
Eurofound (2024), Kika/Leiner, Bankruptcy in Austria, factsheet number 202027, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/202027.
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