A popular German interior decorations retailer is set to close at least 27 of its branches by the end of the year as it grapples with ongoing insolvency struggles. The closures, part of a broader restructuring plan, have already seen 17 branches of the chain, Depot, shut down, reducing the brand's network to 285 stores nationwide.
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Depot, a subsidiary of Gries Deco Company (GDC), has faced mounting difficulties since the COVID-19 pandemic. To address its financial troubles, the company filed for insolvency in July, enabling it to continue operations under self-administration.
While most impacted employees are expected to be reassigned to other locations, around 50 of Depot's remaining 3,550 staff will lose their jobs as a direct result of the store closures. At the company's headquarters in Niedernberg, Bavaria, staffing has already shrunk from 650 employees at the start of the year to 500.
Depot's restructuring extends beyond Germany, affecting its operations in other German-speaking countries. In Austria, the retailer reduced its branch network from 49 to 29 stores this year. In Switzerland, Depot continues to operate 34 branches.
The brand hopes to return to regular operations by mid-2025, with plans to refine its product range and reposition itself in the market. This includes exploring partnerships with external brands to diversify its offerings.
Source: finance.yahoo.com