Germany’s interior decorations retailer Depot plans to close at least 27 branches by the end of the year amid its insolvency struggles, chief executive Christian Gries told dpa on Sunday.
Seventeen branches have already been closed down, reducing the brand’s network to 285 shops. Further closures are likely and negotiations with some landlords are ongoing, Gries said. “Branches that are not profitable will be closed completely.”
Most impacted employees at Depot, known for products like table decorations, furniture and ornamental gifts, are expected to be transferred to other branches.
However, approximately 50 of the currently remaining total of 3,550 employees will lose their jobs due to the planned closure of the 27 branches.
In the company’s headquarters in Niedernberg in the southern state of Bavaria, the number of employees has decreased from around 650 to 500 since the beginning of the year, the company says.
Depot, a subsidiary of the Gries Deco Company (GDC), faced difficulties during and after the coronavirus pandemic. Due to the threat of insolvency, the company filed an application for insolvency in July allowing for continued self-administration.
The company says it is seeking to return to regular operations by the middle of 2025 at the latest. At the same time, Depot is working on its product ranges and a new market positioning and is reported to be considering adding external brands to its product range.
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