Employees attacked

Security after attacks in Kika/Leiner stores

The sale at Kika/Leiner has already begun. All stores are to be empty and closed by the end of January. However, many customers are very displeased about the bankruptcy.

(Bild: Jöchl Martin/Krone KREATIV)

Following the bankruptcy of the furniture giant Kika/Leiner, many customers will "fall over" for their vouchers and deposits. Their anger is now being felt by the employees, who themselves are losing their jobs. In addition to verbal abuse and outbursts of anger, there have even been physical attacks. The company has reacted and now employs security staff in all stores.

Many customers are - rightly - very angry. Anyone who has made a down payment or still has vouchers in their drawer at home will almost certainly be able to write off the majority of them. The employees of the ailing furniture retailer now have to bear the brunt of this displeasure. Those affected are venting their anger on site and insulting or even attacking the staff, who, as we know, will soon lose their jobs themselves. Security forces have therefore now been set up in all eleven Kika and six Leiner stores (see graphic below) to protect staff from attacks, some of which are said to be "very severe". Consumer advocates and lawyers are advising prudence here, as the staff cannot be held responsible for the bankruptcy.

The sell-off at Kika/Leiner has already begun. All stores are to be empty and closed by the end of January. However, many customers are very unhappy about the bankruptcy.

(Bild: Jöchl Martin/Krone KREATIV)

What affected Kika/Leiner customers can actually do
Vouchers will no longer be accepted in the event of bankruptcy. As far as advance payments are concerned, the insolvency administrator will be checking until the end of the week whether or not he will still be fulfilling the underlying orders. The affected customers will then be informed on Monday.

However, insolvency experts assume that only a small number of customers will receive the furniture they ordered. All others will have to register their claims with the insolvency administrator. But time is of the essence here. The deadline for this only runs until January 10, 2025. It is also worth considering whether it makes sense to register a claim at all. According to the Court Fees Act, it costs 25 euros, explains VKI legal expert Maximilian Eder. Because at the end of the day you only get a low, probably single-digit percentage of this back after the liquidation of the bankruptcy estate, an application for a 50 or even 100 euro voucher is not worthwhile.

You should consider whether it makes sense to file a claim at all

Maximilian Eder, Rechtsexperte des VKI

Bild: Opern Foto Graz

The situation is a little better for larger down payments that are no longer fulfilled. For example, if you have paid 5,000 euros in advance for a kitchen, with a possible repayment rate of 5 percent, you will still get 250 euros back at the end, minus the 25 euro fee, then 225 euros. That is at least better than nothing.

Around a third of down payments secured with "ballast protection"
On the other hand, those whose down payments are covered by the so-called "ballast protection" have virtually nothing to worry about. Hermann Wieser, owner of Kika/Leiner, introduced this shortly after the takeover and initial restructuring of the company. The "Schotterschutz" protects the money paid in advance and all affected customers get their deposit back. In legal terms, this is a right to segregation. Around a third of all advance payments at Kika/Leiner are likely to be protected in this way, it is said.

Stores to close at the end of January, sales bonus for employees
The (heated) sell-off at the stores is to continue until the end of January. The aim is to then lower the shutters for good. However, one or two stores may still be open in February. The employees will keep their jobs as long as they are needed. However, if the branch closes, the job will also be history. However, it is said that a "sales bonus" is still planned for them.

Kika/Leiner suppliers protected by insurance
There is good news for the suppliers of the insolvent furniture retailer in the wake of the bankruptcy. Their receivables are protected by a so-called "del credere insurance", which steps in, for example, if the business partner becomes insolvent. They should therefore not suffer any loss - apart from the loss of Kika/Leiner as a customer.