retail
Discounter in the crisis – Pepco reports bankruptcy
Customers’ retention of purchase is burdened by many dealers. The discounter Pepco writes red numbers in Germany. Now the chain has to be renovated.
The German branch of the textile and toy dealer Pepco is insolvent. Pepco Germany GmbH applied for a protective shield procedure at the Berlin-Charlottenburg District Court, as the company announced. The reason is operational losses and structural challenges in the branch network. The aim of the procedure is a realignment of the business.
Pepco has been active in Germany since 2022 and, according to its own statements, runs 64 shops, most in the east of the country. Around 500 people are currently employed. You should now receive bankruptcy money. All branches should remain open until further notice.
The chain mainly sells clothes, but also toys and decorative items. The most important competitors include action and TEDI, both of whom have recently been expanded. Pepco had also planned this. Two years ago, the company announced that it would want to open up to 2000 branches in the long term.
4,000 shops in 18 countries
Refurbishment managing director Christian Stoffler from the Munich law firm Gerloff Liebler said that one sees good chances to also successfully develop “in the difficult German retail market”. The parent company, based in the Netherlands, announced that they support the renovation of Pepco Germany and ensure the financing.
Gordon Geiser was appointed as a provisional administrator. As a rule, the management remains in office during protective shield procedures. Other media had previously reported on the bankruptcy.
The Pepco Group operates a total of around 4,000 locations with more than 31,000 employees in 18 European countries. The first Pepco branches were opened in Poland in 2004.
dpa
Source: Stern
