The chain for furniture and decorative items, Depot, which is struggling with falling sales, had to file for bankruptcy. According to the company, wages for more than 4,000 employees across the country are guaranteed until September.
Furniture and home accessories retailer Iosta has filed for bankruptcy. The company has around 300 branches across the country, as well as locations in Switzerland and Austria. The chain employed around 4,400 people in Germany last year.
The Gries Deco Company, the company owned by Christian Gries that operates the Depot branches, announced that the Depot should now be rehabilitated using a protective shielding procedure. An insolvency plan should be presented soon, if possible this year.
The company itself can appoint an administrator for the process. The protective shield procedure has already been approved by the Aschaffenburg district court.
way protective shielding procedure “consciously chosen”
The aim is to “sustainably align the company with the new market conditions, especially with the landlord and supplier base,” continued the Gries Deco Company.
The first steps have already been taken: Sven Tischendorf and Alexander Höpfner, two “defensive protection experts with a lot of experience in the market, especially in the retail sector,” have been appointed to the management.
The protective shielding procedure was “very well prepared and consciously chosen,” explained owner and managing director Gries himself Now everyone involved should be contacted “quickly, especially employees, landlords, suppliers and business partners” to discuss next steps.
Sales fell at the start of the corona pandemic
Business operations should continue to operate without restrictions during the shielding procedure. According to the group, wage payments have been secured until September.
The Depot crisis has been getting worse for some time. At the end of March, Gries announced that he was returning to the top position after two years and a separation from management at the time. In 2023, Iosta recorded sales of 330 million euros. Before the corona pandemic, it was about 410 million euros a year, the Handelsblatt quoted the current managing director as saying at the time.