Kika/Leiner before ruin: 1,350 employees in the job trap!

Kika/Leiner before ruin: 1,350 employees in the job trap!

The Kika/Leiner furniture chain withdrew its renovation plan and filed for bankruptcy after she could not find an investor. The bankruptcy affects around 1,350 employees who now have to fear for their jobs. Insolvency administrator Volker Leitner announced that the existing stocks will be sold in the 17 branches that will soon be closed. The company's financial crisis has been going on for years, shaped by several changes of ownership and finally the sale of real estate and operational business.

The effects of bankruptcy are dramatic: Many customers who have made payments for furniture are now faced with loss of their funds. Due to the legal requirements, these amounts cannot be refunded, which leaves many affected people in financial emergencies. According to a report by Kurier , it is one of the complaints that employees were insulted as "whores". Such incidents underline the difficulties that the employees are now facing while trying to maintain the business under enormous pressure

With the bankruptcy of Kika/Leiner, the competitive pressure in the furniture trade will continue to increase. Market researchers have found that the market shares of XXXLutz and Ikea have already dominated, while Kika/Leiner recently only had a modest share of 13 percent. It is expected that the numerous damaged customers and the upcoming closures of the branches will influence the structure of the domestic furniture market.