Liquidation of a well-known furniture chain. Discounts on goods, exemptions

On December 4, 2024, the Austrian furniture chain Kika/Leiner announced bankruptcy, ending its operations after an unsuccessful restructuring attempt. The decision concerns the closure of 17 branches and the elimination of jobs for 1,350 employees. The warehouses started selling goods with 30% discounts, which is one of the last steps before the complete closure of the business.

Financial problems and failed restructuring attempts

Kika/Leiner has been struggling with the financial crisis for several years. Over the last 10 years, the company’s owners have changed three times. In June 2023, Signa, a company owned by billionaire René Benko, sold the properties belonging to Kika/Leiner to Graz Supernova and transferred the operational activities to Hermann Wieser. However, just a few months later, on June 12, 2023, the company’s bankruptcy was announced.

The first restructuring assumed the closure of 23 of 40 branches and the dismissal of 1,900 of 3,900 employees. Despite these actions, the following months did not bring the expected results. On November 14, 2024, the chain again filed for bankruptcy with the commercial court, and efforts to find investors ended in failure. The final decision to cease operations was made on December 4.

Liquidation and consequences for customers and the market

The bankruptcy of a company has consequences not only for employees, but also for customers who made advance payments for furniture. The bankruptcy trustee informed that prepayments can be separated from the bankruptcy estate, which means that the money can be refunded in the event of properly concluded repayment guarantees. Customer orders are currently being analyzed and are expected to be completed by mid-December.

The collapse of Kika/Leiner will affect the structure of the Austrian furniture market. Experts indicate that market concentration will increase significantly. Currently, it is dominated by XXXLutz GmbH with a share of 34%. and Ikea with 19 percent. Before the closure, the Kika/Leiner chain controlled 13 percent. market, which made it one of the main players.

The history of expansion and decline of power

Kika/Leiner was established in 1973, opening 18 showrooms under the Leiner brand and 32 under the Kika brand. The chain gradually developed its international operations, entering the markets of Central and Eastern Europe and opening branches in Saudi Arabia. In 2005, Kika was recognized as the best online store in Austria.

Financial problems began in the last decade, when changing owners were unable to stabilize the company’s situation. The restructuring process initiated in 2023 ended in failure, and subsequent rescue plans did not bring results.