Einzelhandel: Depot-Betreiberin kündigt alle Verträge – Marke soll bleiben

Düsseldorf, Germany - The retail chain Depot is facing insolvency and has announced plans to terminate all contracts, effective September 30th, 2023. Company owner Christian Gries revealed this to the Deutsche Presse-Agentur. The layoffs will encompass all employment relationships and rental agreements, starting on September 30th. Gries informed the employees of this decision on Wednesday.

Despite the termination of contracts, Gries asserts that the brand itself will persist. The company from Grossostheim, Bavaria, initiated insolvency proceedings in May, citing high tariffs, intensifying competition from platforms such as Temu, and consumer hesitance in making purchases as reasons for the crisis. In June, Depot announced the closure of 66 out of its approximately 150 stores. By early August, an additional 30 stores followed suit.

Gries explained that the insolvency proceedings could not cover all liabilities. As a result, approximately 730 employees will be laid off by the end of September, with 350 already dismissed in July. However, this does not necessarily signal the company's end, according to Gries. He intends to transfer the brand to another corporation and continue operations with a smaller workforce.

Gries aims to negotiate new lease agreements with the landlords to keep some of the remaining 50 or so stores open until September's end. The specific number of stores that will remain intact and the ultimate decision on this matter remain undisclosed. Gries is also discussing the continuation of smaller Depot shops, which are integrated into markets by retailers like Rewe or Edeka.

Both companies have not yet responded to the proposal. Depot originally operated around 400 stores until a few years ago. During and following the COVID-19 pandemic, the chain faced significant challenges. The company declared insolvency in its own management in 2024, leading to a drastic reduction in the number of stores and job losses for many employees.

The retail sector in Germany is under pressure due to weak consumer sentiment and the growing online retail market. Besides Depot, other non-food discounters like Kodi and Mäc Geiz, as well as the hardware chain Hellweg, recently filed for insolvency.