Discounts of up to minus 70%

Depot wants to save most of the threatened stores

At least 20 of the 26 previously loss-making stores should be able to continue operating. Instead of 200, the number of employees who will ultimately be made redundant is expected to fall to "just over 40".

(Bild: Vergil Siegl)

Talks are going well between Rainer Schrems, head of the home accessories chain Depot, and the landlords about the future of the 26 of 49 stores that have been making losses so far: "It looks like we can keep at least 20 stores for the time being."

Reorganizer and "closure expert" Schrems is pleased that the situation appears to be less dire than feared: "I would like to thank the landlords, most of whom have been very accommodating." In some cases, it was possible to agree on lower rents and extend the term of the rental contracts. For example, the largest landlord, the Spar shopping center subsidiary SES, will probably be able to continue operating six of the seven affected depot branches.

Schrems is already in the process of withdrawing many of the notices of termination
This is good news for the employees. As a precaution, the Viennese manager registered 200 of the 400 employees with the AMS for redundancy in March. "Now I reckon that in the end it will only affect just over 40 employees. In those stores where we already know that we can save them, we are already in the process of withdrawing the redundancies - for example in the Q19 shopping center in Vienna-Döbling."

(Bild: Krone KREATIV, stock.adobe.com)

For the time being, sales in the 26 previously loss-making stores (see chart above) will continue. The discount has been increased to minus 70 percent for artificial and dried flowers, for example. Candles are now discounted by 60 percent and lamps, small items of furniture and napkins by 50 percent. The minimum discount, which is now available for all product groups, has been increased from 20 to 30 to 40 percent.

The discounts may be increased to minus 90 percent in the course of May
In addition, all 26 affected stores will soon display how long it will be until the last day of sales - and then there may be new promotions every day until then. Schrems: "The discounts will continue to increase and can be increased to up to minus 90 percent over the course of May." The goal remains the same: All existing merchandise should be sold off by the end of May in order to be able to restart in those stores that could be saved.