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The company is ceasing all business operations in Austria and will file for bankruptcy next week, as the “Standard” (online) reported on Wednesday. 680 employees in 73 branches are affected. According to the newspaper, the company justifies the move by saying that “the expected level of returns” is not being achieved in Austria.
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Pepco only entered Austria two and a half years ago, when it took over the majority of the shoe retail chain CCC’s stores. The company offers, among other things, clothing, toys, household goods and furniture at low prices.
Despite “various initiatives and structural changes” to “address inadequate operating performance,” Pepco continued to make losses, the company wrote. For this reason, they will withdraw from Austria and focus on markets where there are better return opportunities.
Shops remain open for the time being
The company said it will file for bankruptcy “in the next few days.” The shops should remain open for the time being. According to “Standard”, the staff in Austria has already been informed about the planned insolvency.
The company, headquartered in the city of Poznań, currently employs over 31,000 people in 19 European countries and has a network of more than 3,600 stores. Internationally, the Pepco Group posted sales records in the 2022/2023 financial year. Sales rose by more than 17 percent to 5.65 billion euros as a result of numerous new openings. Net profit, however, fell by 41 percent to 102 million euros.
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