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Kika/Leiner on the verge of extinction: 1,350 jobs at risk! This is how it continues!
KikaLeiner closes all branches and lays off 1,350 employees due to insolvency. Trade unions demand labor foundation.
Kika/Leiner on the verge of extinction: 1,350 jobs at risk! This is how it continues!
The furniture chain kika/Leiner is at a crucial turning point: The branches are currently still open as inventory is being sold off. But no location can escape the impending fate of closure, as all 17 kika/Leiner branches are scheduled to close soon. This would mean that all 1,350 employees, including around 600 in Lower Austria, would lose their jobs. How noe.ORF.at reports, many employees are worried about their future. The GPA union is calling for a permanent foundation solution to support employees in the extremely tense trading situation.
The situation is extremely difficult given the company's ongoing crisis, which began in 2013. Loud nachrichten.at There have been three changes of ownership since then. Most recently, the company filed for bankruptcy because trading manager Hermann Wieser failed to find financial resources or an investor. 23 of 40 branches were already closed during the first renovation. The union still sees good opportunities for well-trained employees on the job market, but it is pushing for a labor foundation to make it easier for those affected to reorient themselves.
A serious blow for those affected
However, the question of salaries remains a significant problem: According to information, all kika/Leiner employees should receive the payments they are entitled to, including salaries and Christmas bonuses, by the end of the year. This regulation is carried out via the insolvency compensation fund. Nevertheless, many customers are affected by the bankruptcy. Several customers have already paid deposits, mostly with no prospect of a refund, as insolvency law imposes strict regulations. Insolvency administrator Leitner appeals not to take the displeasure about the situation out on the employees, who are also victims of the misery. The bankruptcy of kika/Leiner is expected to further aggravate the market situation in the furniture trade and reshape the competitive landscape, which can already be seen in the increasing market shares of companies such as XXXLutz and Ikea.