An Austrian furniture retailer, with 17 stores and 1,400 employees nationwide, has once again filed for insolvency, marking a significant setback despite previous efforts to restructure. The company, Kika/Leiner's recent attempt to avoid financial collapse was hampered by a lack of liquidity, the collapse of its major creditor Signa, ongoing recession, and rising operational costs.
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Company spokesperson Michael Slamanig confirmed that Kika/Leiner lacks sufficient funds to maintain operations and meet a significant payment due to creditors in January 2025. The possibility of continuing operations remains uncertain, with many insiders expecting the company to enter full bankruptcy proceedings.
Kika/Leiner's restructuring plan initially gained approval in September 2023, proposing a partial debt repayment with instalments through September 2025. However, the company's financial instability has led to mounting debt, including obligations from the prior bankruptcy that it could not meet. This failure to implement the plan effectively reactivates half of the unresolved debts, along with new liabilities accrued since the previous proceedings were closed in October 2023.
Management emphasised that they made every effort to save the brand, including aligning product offerings and merging Kika and Leiner under a unified identity, but ultimately, external economic pressures and brand reputation damage following Signa's bankruptcy severely limited their progress.
Source: www.kleinezeitung.at