Insolvency at kika/Leiner: 1,350 jobs at risk!

Insolvency at kika/Leiner: 1,350 jobs at risk!

The insolvency of the furniture store kika/Leiner is now certain: after efforts to find an investor failed, 17 branches are to be closed. As a result, 1,350 employees will lose their jobs, as the Credit Protection Association reported in 1870. Although wages are secured until the end of the year, the uncertainty for employees is palpable. The insolvency administrator, Volker Leitner, pointed out in an official announcement that the existing inventory is now being sold and an examination of open customer orders is underway. Customers should be informed about the results on December 9th.

Insights into legal aspects of insolvency

Based on the information from legaladvisordeutschland.de It becomes clear what rights employees have in such a situation. Salary claims must be registered vis-à-vis the insolvency administrator; This ensures that employees can receive at least part of their outstanding salary despite the bankruptcy. As a rule, the employment office pays insolvency money for up to three months of back wages. Registrations must be made on time, otherwise claims may be lost.

The furniture store is looking back on a difficult time, which was exacerbated by economic uncertainties and the consequences of the COVID-19 pandemic. In this case, there could be no social plan to cushion social hardship, which deprives employees of the opportunity to receive additional support during the transition period. It remains to be seen how the situation will develop and what measures can still be taken for the affected employees.