German decoration chain Depot files for insolvency
Published: Tuesday, Jul 16th 2024, 17:00
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The decoration retailer Depot can be found in many city centers - including Switzerland. Now the German company has filed for insolvency.
On Monday, Aschaffenburg Local Court approved protective shield proceedings for the retail company Gries Deco Company GmbH and appointed a provisional trustee and a provisional creditors' committee, according to a court spokeswoman. She confirmed media reports.
The insolvency protection shield procedure is intended to protect companies in crisis in Germany from being seized by creditors. The management can continue to manage the company responsibly and restructure it independently. However, a lawyer is appointed to assist them as a so-called trustee.
Depot chain spread throughout the DACH region
The branches of the decoration and furnishing retailer Depot can be found in many German city centers, as well as in Switzerland and Austria. However, the retail chain from Niedernberg in Lower Franconia with its 500 stores, which had belonged to Migros for ten years, had already been experiencing difficulties in recent years.
After Migros joined the company in 2009, Depot pursued an aggressive course of expansion. The number of stores rose from 109 to 500 and sales climbed dramatically.
However, profits did not grow at the same pace; on the contrary, the company made losses. In 2019, Migros sold its 90% stake in the home accessories provider to the previous CEO and founder's grandson Christian Gries. He had previously held a 10% stake in the company.
According to company information, Gries Deco Company GmbH recently generated sales of around 390 million euros. No details of profit or loss were provided. According to the company, it has 6500 employees and over 500 branches in Germany, Switzerland and Austria.
A plan should be in place by the end of the year
"We will approach all parties involved very quickly - especially employees, landlords, suppliers and business partners, of course - and discuss the next steps together," said Christian Gries according to the press release.
The company's business operations are to continue without restriction. The wages and salaries of employees in Germany are secured until September. The aim is to have a plan for realigning the company by the end of the year at the latest.
The protective shield proceedings are not expected to have any relevant impact on the Group's 34 depot locations in Switzerland. For the locations in Austria, the aim is to continue to operate a large proportion of them.
©Keystone/SDA
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