2024-08-04 05:41:20
Insolvency proceedings
Depot: Vouchers and returns stopped
02.08.2024Reading time: 3 min.
Depot is in crisis. Rising prices and reluctance to buy are causing problems for the company. Now customers are feeling the consequences.
The decoration and furnishing retailer Depot is a well-known brand in many city centers. But business has not been running smoothly for several months. The retail chain from Niedernberg in Lower Franconia, with its around 300 shops and branches, slipped into the red and had to file for bankruptcy.
The district court of Aschaffenburg has approved the application for insolvency on its own initiative. The retail company called Gries Deco Company GmbH is entering into a protective shield procedure to protect itself from access by creditors.
The creditors include not only suppliers, landlords or tax offices, but also customers who have bought goods in the store or online shop and now want to return them. Others have bought a voucher or received it as a gift and would like to redeem it.
Due to the insolvency under self-administration, vouchers can currently neither be purchased nor redeemed at Depot. This is reported by the “Augsburger Allgemeine”. This is also stated in a message in the company’s online shop. Vouchers cannot currently be redeemed in the stationary stores either.
- Business goes bankrupt: What happens to my voucher?
If insolvency proceedings have been opened against the assets of the retailer who issued you a voucher, you can only register your claims from the voucher in the insolvency register. This means that vouchers issued do not automatically expire, but they may no longer be accepted by the insolvent company.
Customers who still have a deposit voucher become creditors. They can register their claim from the voucher with the responsible insolvency administrator in the insolvency proceedings. However, according to the Brandenburg Consumer Advice Center, the prospects of receiving the full value of the voucher are very slim. Such claims usually come to nothing because of the small insolvency assets.
At the same time as the vouchers, returns at Depot have also been stopped, reports the “Augsburger Allgemeine”. The company’s website states: “All items ordered before July 16, 2024 cannot currently be returned.” For further questions regarding orders, customers should contact Depot customer service by email.
Rental contracts under scrutiny
In order to get back on its feet, a tough austerity program and concessions from the landlords of Depot branches are needed, Gries explained in March of this year. 90 of the slightly more than 300 branches in Germany whose leases are expiring are to be examined. According to Gries, Depot will extend the lease in these cases if the landlords are prepared to make concessions.
According to the “Augsburger Allgemeine”, Depot has already made significant staff cuts at headquarters and reduced personnel costs by around ten percent. The insolvency plan should also be in place by January 2025 at the latest. The aim is to stabilize Depot financially and make it profitable again.
The good news for all customers of decorative items and furnishings is that business operations in Depot branches will continue without restrictions. The wages and salaries of employees in Germany are secured until September. The aim is to have a concept for the company’s reorientation by the turn of the year at the latest.
Gries Deco Company GmbH recently generated sales of around 390 million euros. No information on profit or loss was provided. The company had around 4,400 employees and more than 300 branches in Germany.