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Kika/Leiner insolvency: 1,350 jobs at risk – this is what happens next for the employees!
In Vienna, long-time Kika/Leiner employees are losing their jobs due to the bankruptcy. The furniture store branches are closed and sold.
Kika/Leiner insolvency: 1,350 jobs at risk – this is what happens next for the employees!
The Kika/Leiner furniture chain is going through a dramatic upheaval that is affecting the fate of around 1,350 employees. With the closure of the last 17 branches at the end of January, a long-standing employee base, many of whom had been with the company for over five years, will be shown the door. Due to the statutory notice periods, these dismissals will not come into effect until the summer or autumn, which means that many employees will be without a salary until then. According to Michael Pieber, managing director of the GPA NÖ union, employees have the opportunity to use a work foundation to further their professional qualifications. However, the foundation in Lower Austria is still in the planning stage, while in Vienna support is already being offered through the Vienna Employees' Promotion Fund, which grants the affected employees training grants of 100 euros per month, reports The press.
Striking changes in the furniture industry
The insolvency of Kika/Leiner is expected to lead to increased market concentration in the industry. Industry expert Andreas Kreutzer estimates that the competitive situation following Kika/Leiner's withdrawal could be advantageous for the remaining providers, which will result in faster price increases. XXXLutz, which already has a market share of around 35 percent, is expected to continue to grow while Ikea and other suppliers fight for remaining market share. This could become more expensive for consumers in the coming years as competitive conditions change, he said vienna.at.
The closure of the Kika/Leiner branches marks another high point in the company's long-standing crisis, which has suffered from three changes of ownership in the last 12 years. Kika/Leiner was last converted into bankruptcy proceedings in November 2024 after the search for an investor failed. The development is a clear indication of the challenges facing the domestic furniture trade and will significantly change the face of the industry in Austria.