Kika/Leiner bankruptcy: 1,400 jobs in danger-what kind of customers?

The sad news before Christmas is not long in coming: 1,400 employees of the Kika/Leiner furniture store chain have to give up their jobs due to a failed renovation, as the company has filed for bankruptcy. This development affected many Austrian customers who have already paid for their furniture ordered in advance. An employee of the Upper Austria Chamber of Labor, Gernot Fieber, reports that numerous unsettled customers have been calling for bankruptcy since the bankruptcy became known. Many wonder whether and when they will receive their ordered products. The uncertainty is great, since the information about repayments and availability is missing, a report by .

An insolvency administrator should present a plan by the end of the week to clarify the down payments. By January 10, affected customers have time to register their claims at the St. Pölten Regional Court. According to the fever, there is the possibility that repayments are only a small quota of the amount already paid. A customer who has deposited 1,000 euros for a piece of furniture could only get 75 euros back if the rate is ten percent. The risk of payment defaults is currently worryingly high in the furniture industry, as in an article on heropay.eu where the loss in France makes 56 billion euros annually.

claims and delays in payment

The topic of unpaid customer demands is not only a challenge for Kika/Leiner, but also affects many companies that are faced with similar risks. Effective management of customer demands is essential to avoid defaults on payment and maintain the cash flow. On top of that, dealing with such demands shows how important transparent communication of the payment terms is in order to avoid misunderstandings and dissatisfaction. The legally required payment period of 30 days must not be exceeded, but customers often have difficulty setting their bills in good time. This increases the already difficult situation for companies such as Kika/Leiner, in which the uncertainty about future payments and availability continues to increase.