120 employees fear

Too small, too expensive: Libro closes 34 stores

The Libro retail chain wants to close 34 stores, with the MTH Group preferring to focus on the Pagro brand instead. Around 120 employees are likely to be affected by the plans. 

The good times of the office supplies chain Libro, founded by Billa founder Karl Wlaschek, are long gone. The group used to have 250 stores, but now only has 180. The chain already needed restructuring once and came under the umbrella of the MTH Group, owned by the recently deceased industrialist and former Austrian People's Party politician Josef Taus, around the turn of the millennium. A number of closures are likely to take place again this year.

34 locations are shaky, with 120 employees likely to be affected, reports the "Standard". Many of them, however, are likely to be rehired by Pagro. The chain is set to continue to grow strongly in the future, with 90 new locations added just last year.

Libro stores too small and too expensive
The reason for the rigid savings is the high costs; the group has been struggling with falling profits for several years. Many of the Libro stores no longer fit into the concept of the owner MTH, they are too small and in some cases hardly profitable. The Group is also struggling with the usual problems in the retail sector, such as high costs for staff and rents as well as poor consumer sentiment.

Withdrawal from Germany too
The Group is also withdrawing from Germany. Its discount chain Pfennigpfeiffer with 84 stores is being sold to rival Tedi. The focus is now on Austria and Switzerland. In this country, the company is the market leader in stationery. A complete end to the Libro brand is not planned - at least for the time being.