The decoration and furnishings retailer Depot can be found in many cities. But the company behind the well-known chain is in crisis. A protective shield procedure is now intended to help.
The decoration retailer Depot can be found in many city centers – now the company from Franconia has filed for insolvency under self-administration. On Monday, the Aschaffenburg district court approved a protective shield procedure for the retail company called Gries Deco Company GmbH and appointed a provisional administrator and a provisional creditors’ committee, a court spokeswoman said. She thereby confirmed media reports.
The insolvency protection procedure is intended to protect companies in crisis from access by creditors. The management can continue to manage the company responsibly and restructure it independently. However, a lawyer is assigned to act as a so-called trustee.
Depot chain spread nationwide
The branches of the decoration and furnishing retailer Depot can be found in many German city centers. However, the retail chain from Niedernberg in Lower Franconia with its 500 stores has already had difficulties in recent years.
After the Swiss retail giant Migros entered the market in 2009, Depot pursued an aggressive expansion course. The number of branches rose from 109 to 500, and sales rose dramatically. However, profits did not grow at the same pace; on the contrary, the company made losses. In 2019, Migros sold its 90 percent stake in the home accessories provider to the previous company boss and founder’s grandson Christian Gries. He had previously held a 10 percent stake in the company.
According to company information, Gries Deco Company GmbH recently generated sales of around 390 million euros. No information on profit or loss was provided. The company had around 4,400 employees and more than 300 branches in Germany.
There should be a plan by the turn of the year
“We will very quickly approach everyone involved – especially employees, landlords, suppliers and business partners – and discuss the next steps together,” said Christian Gries, according to the statement.
The company’s business operations are to continue without restrictions. The wages and salaries of employees in Germany are secured until September. The aim is to have a plan for the company’s reorientation by the turn of the year at the latest.
The protective shield procedure will not have any significant impact on the group’s 34 depot locations in Switzerland in the foreseeable future. For the locations in Austria, the aim is to continue to operate a large proportion of them.
Source: Stern
