Furniture chain Kika/Leiner has announced its plans to undergo a comprehensive restructuring process that includes insolvency proceedings following the recent sale of its operating business. The company has affirmed that the measures previously announced to rescue and revive the company will be implemented without any alterations. It is expected that the insolvency procedure will be conducted without self-administration, although further details about the specific nature of the proceedings are yet to be disclosed.
After thoroughly evaluating the economic landscape, Kika/Leiner has confirmed its decision to initiate the restructuring process, which is slated to be officially registered in the coming week. The company has emphasized that the package of measures aimed at salvaging the business will remain unchanged. As part of the restructuring efforts, the new owner of Kika/Leiner’s operating business recently declared the closure of 23 out of 40 locations by the end of July. Consequently, this will lead to the unfortunate layoff of 1,900 employees, out of a total workforce of 3,900. Furthermore, the central departments and administration will undergo significant downsizing.
Kika/Leiner has assured that the termination of employees will be executed in compliance with legal regulations pertaining to termination dates and notice periods. It is anticipated that a significant number of employees will be made redundant by the end of July 2023. Despite these challenging circumstances, the company has provided reassurance to its customers that all down payments made and vouchers purchased will be honored and can still be redeemed at any of the Kika/Leiner branches. Existing bonus points will be retained, and the company is committed to fulfilling all existing orders as previously agreed upon.
The decision to pursue insolvency proceedings underscores the substantial hurdles faced by Kika/Leiner within the retail industry. The objective of the restructuring process is to effectively address the prevailing economic difficulties and ensure the future viability of the company. While specific details regarding the insolvency procedure are yet to be unveiled, it is expected that Kika/Leiner will diligently follow the necessary legal procedures in navigating through this phase.
Kika/Leiner is taking decisive action to implement a comprehensive restructuring plan and overcome the financial challenges it currently confronts. The company is dedicated to fulfilling customer orders and upholding customer trust by honoring down payments, vouchers, and bonus points. This restructuring process will pave the way for Kika/Leiner to navigate these turbulent times and forge a more sustainable future.