After the news of the insolvency it is now reported the Austrian furniture retailer Kika/Leiner has entered bankruptcy after efforts to find investors were unsuccessful following a second restructuring attempt. According to the Oberösterreichische Nachrichten (OÖN), the company withdrew its restructuring plan on Wednesday, 4 December.
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Following its second bankruptcy filing in mid-November, a liquidation sale has now commenced. OÖN reports that the retailer's 17 branches are expected to close, leading to the dismissal of approximately 1,350 employees.
Insolvency administrator Volker Leitner is currently assessing which customer orders can still be processed in line with insolvency law. He expects this review to conclude by the end of the week. Leitner explained to OÖN that certain advance payments have a right of segregation due to properly secured advance payment guarantees. However, he also noted that there are 'many customers' who will face difficulties as their advance payments cannot be reimbursed due to insolvency law provisions. 'It has been established that there are numerous hardship cases among affected customers. Regrettably, insolvency law offers no exceptions or flexibility in this matter,' he added.
Customers who have been impacted can submit their advance payments as claims in the bankruptcy proceedings at the St. Pölten Regional Court.
Source: www.moebelmarkt.de