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 In Non-Specialised Stores 47.11 - Retail sale in non-specialised stores with food, beverages or tobacco predominating
2,700 - 3,000 jobs Number of planned job losses
Announcement Date
26 November 2015
Employment effect (start)
26 November 2015
Foreseen end date
Description
On 26 November 2015, indebted Austrian retail chain Zielpunkt, part of Pfeiffer group, declared bankruptcy resulting in the loss of up to 3,000 jobs.
The Upper-Austrian trade group Pfeiffer took over Zielpunkt in 2014. Despite investments the ailing retail chain recorded further losses. According to media reports only one third of all Zielpunkt stores were profitable. A drop in sales in October and November further worsened the company's economic situation. Keeping the company going would have required an investment of €60 million over the next three to five years. Given the poor economic prospects and the high amount of debt Pfeiffer decided to open insolvency proceedings in early December. Wages and other claims will be covered by the Insolvenz-Entgelt-Fonds IEF.
The insolvency affects 2,700 employees, including 200 employees currently on parental leave. Additional 300 jobs are at stake at Pfeiffer's logistic centre. Trade unions are accusing management of not consulting social partners in time. The trade groups way of proceeding also came under severe criticism as some of the profitable Zielpunkt stores will probably be taken over by other retail chains owned by Pfeiffer, Unimarkt and Nah&Frisch, to expand their business. Competitors have indicated interest in taking over some of the remaining stores.
Sources
26 November 2015: Der Standard
26 November 2015: Wirtschaftsblatt
27 November 2015: Die Presse
26 November 2015: Wiener Zeitung
Citation
Eurofound (2015), Zielpunkt, Bankruptcy in Austria, factsheet number 85521, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/85521.
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