Until the summer

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A Kika store in Graz

(Bild: Juergen Fuchs)

January 29 was Kika/Leiner's last day of business. In the meantime, the majority of the 1,350 employees have been made redundant, while some long-serving employees will continue to receive their salaries until the summer due to longer notice periods.

Approximately two thirds of the Kika/Leiner workforce have been on board for more than five years, said Michael Pieber, managing director of the trade union GPA Niederösterreich. In Lower Austria and Vienna, former employees can take advantage of a work foundation and receive training and further education. This foundation was only recently approved.

The outstanding salaries were paid in less than two weeks, praised insolvency administrator Volker Leitner. The closed furniture stores are currently being completely cleared out and cleaned so that they can be returned to Supernova. The real estate developer is the owner of the properties and is preparing the sale or long-term lease. Across Austria, 17 furniture stores have been closed.

Until February 28, the furniture chain's stock, store fittings, vehicle fleet and furnishings from the company headquarters are being sold via the Aurena auction platform.

Is there a threat of higher furniture prices?
The bankruptcy of Kika/Leiner will lead to greater market concentration in the furniture trade and could result in rapid price increases. Kika/Leiner generated sales of around 300 million euros last year. That is a six percent market share. According to industry observers, XXXLutz covers 35 percent of the market, followed by Ikea with around 20 percent and specialist retailers with 12 percent. The Lutz Group also includes Möbelix and Mömax, which will probably continue to grow towards 40 percent, said furniture retailer Christian Wimmer