With 30 million euros one would be able to secure the continued existence of the company for the next three months.
At the insolvent Furniture retail chain Kika/Leiner no stone should be left unturned. “The search for investors is ongoing, hope is alive,” says Stephan Mazal from the creditor protection association Creditreform to KURIER. “There will soon be a sale or a Christmas promotion with at least a 20 percent discount.” The sale could even start this week, but should start next week at the latest, the company says.
An important issue for the insolvency administrator is the down payments made by customers for ordered goods. A low five-digit number of customers have made such advance payments.
Contracts appear to be being fulfilled
“The insolvency administrator still needs around two weeks to check the deposits. For some down payments, where it brings something to the masses, the contracts will be fulfilled,” says Mazal. The insolvency administrator can thus generate additional income because the customers have to pay the remaining outstanding amounts for the goods.
“The deposit creditors are therefore asked to wait and see whether the contract is fulfilled or not,” says Mazal. If the insolvency administrator does not enter into the contracts, the customers can register the claims in the insolvency proceedings and will only receive a quota.
30 million euros needed for three months
Interestingly, in a letter available to KURIER, the Kika/Leiner management describes the company as “almost restructured” and that it “only has liquidation problems”. With 30 million euros it would be possible to secure the company’s continued existence for the next three months.
It is currently unclear whether Kika/Leiner will ultimately be able to survive against the great pressure of competition. The furniture chain has undergone a shrinking process in recent years and suffered two bankruptcies. A year and a half ago there were still 40 locations, today there are still 17. Some of these locations are now wobbling.
Ten percent share
But the top dogs XXXLutz and Ikea Kika/Leiner have long since left behind. According to market researcher RegioData, XXXLutz is the industry leader with a 34 percent market share, followed by Ikea with a 19 percent market share. While Kika/Leiner was tied with XXXLutz 15 years ago, Kika/Leiner’s market share was probably only 13 percent before the second bankruptcy. “Sales did not decline that much because the branches made a lot of sales,” said RegioData boss Wolfgang Richter to the APA. Meanwhile, the market share has probably fallen below ten percent.