German interior decoration chain Depot plans to close at least 27 branches by the end of the year due to the insolvency battle, CEO Christian Gries told dpa on Sunday.
Seventeen branches have already closed, reducing the brand’s network to 285 stores. Further closures are likely and negotiations with some landlords are ongoing, Gries said. “Forestries that are not profitable are closed completely.”
The most affected employees of Depot, known for products such as table decorations, furniture and decorative gifts, are expected to be transferred to other branches.
However, approximately 50 of the currently remaining 3,550 employees will lose their jobs due to the planned closure of the 27 branches.
At the company’s headquarters in Niedernberg in the southern state of Bavaria, the number of employees has fallen from about 650 to 500 since the beginning of this year, the company said.
Depot, a subsidiary of Gries Deco Company (GDC), faced difficulties during and after the coronavirus pandemic. Faced with the threat of insolvency, the company filed for bankruptcy in July, allowing it to continue self-governance.
The company says it is aiming for a return to regular operations by mid-2025. At the same time, Depot is working on its product ranges and a new market positioning and is reportedly considering adding external brands to its product range.
