Financial problems
Discounter Kodi is to be restructured using protective shield proceedings
Customers’ reluctance to buy, increased prices – the Kodi discount stores are in financial distress. You want to renovate yourself.
The financially distressed retailer Kodi would like to restructure itself through protective shield proceedings. The company in Oberhausen announced that Kodi Diskontladen GmbH had submitted a corresponding application to the Duisburg district court. The aim is to develop a restructuring plan that will get the company back into the black. Business operations with 238 branches nationwide will continue without restrictions with all 1,800 employees.
The first measures should be implemented promptly, said Kodi managing director Matthias Schob. “There are already promising approaches that we will now finalize.” The restructuring plan is expected to be presented to the court and creditors in spring 2025. If both accept the plan, the court annuls the proceedings.
Customers are holding back
The company justified the situation with the “clear reluctance” of customers to buy. In recent months there has been a massive loss of sales in an already tough competitive situation. The company was also burdened by increased costs for energy, freight and advertising. Wages and salaries are guaranteed until further notice.
The Oberhausen-based company, which has existed since 1981, sells items from the areas of cleaning, cooking, decorating, DIY, textiles and food, among others. Annual sales were most recently at 130 million euros.
The protective shield procedure is intended to make it easier to restructure companies. The prerequisite is a certificate from an expert that proves that the company still has sufficient liquidity and is capable of being restructured. The management will remain in office during the process and will be supported by restructuring experts.
dpa
Source: Stern
