Customers’ reluctance to buy, rising prices: Kodi discount stores are in financial trouble. You want to renew yourself.
Oberhausen.
Financially struggling retailer Kodi wants to restructure through a shield procedure. The Oberhausen company announced that Kodi Diskontladen GmbH has filed an application to this effect with the Duisburg district court. The objective is to develop a restructuring plan that brings the company back into profit. Business operations with 238 branches nationwide will continue without restrictions with all 1,800 employees.
the first measures should be implemented promptly, Kodi CEO Matthias Schob said. “There are already promising approaches that we will now finalize.” The restructuring plan is expected to be presented to the court and creditors in spring 2025. If both accept the plan, the court cancels the proceedings.
Customers linger
The company justified the situation with customers’ “clear reluctance” to purchase. In recent months there has been a massive loss of sales in an already tough competitive situation. the company was also burdened by higher costs for energy, transportation and advertising. Wages and salaries are guaranteed until further notice.
The Oberhausen-based company, which has existed as 1981, sells items in the cleaning, kitchen, decoration, DIY, textile and food sectors, among other things.Annual sales were recently 130 million euros.