Good news for the majority of employees at the bargain retailer Groschen-Markt: According to the insolvency administrator, talks with possible donors are “close to being concluded”. Three quarters of the existing 41 branches and the jobs there will be retained, as a spokeswoman for the insolvency administrator Olaf Spiekermann announced. There are groschen markets in Thuringia, Saxony, Saxony-Anhalt and Brandenburg.
DEC Handelsgesellschaft mbH is behind the markets. The more than 30-year-old company, based in Dingelstädt, Thuringia (Eichsfeld district), filed for insolvency proceedings at the beginning of December last year. According to the information, this is expected to open on April 1st at the Mühlhausen district court.
Old market, new concept
According to the company, 190 people work for the company, around 170 of them in the Groschen-Markt branches. The spokeswoman explained that there are currently discussions with three “well-known investors”. According to the current status, more than 30 branches should be able to be retained, it was said.
However, no brand names or locations could be mentioned yet. However, the three interested parties want to continue operating the branches under their own names. Only when insolvency proceedings have been opened could contracts with investors to purchase the business operations be concluded. Because the donors bring their own concepts for the locations, there will be a sale in the Groschen markets after the process opens in April. The range includes, among other things, household goods, decorative and DIY items as well as stationery.
Reluctance to consume and changing market conditions are reasons for insolvency
“We try to find every job. However, since Groschen Markt is a tenant, the future solution for each branch requires the consent of the respective landlord,” explained Spiekermann. No bid was received for the acquisition of all Groschen markets or for the company name.
In December, the reason for the company’s financial difficulties was consumer reluctance and structural change in retail.
According to its own information, DEC Handelsgesellschaft mbH has a total sales area of more than 35,000 square meters. The company sources its goods from around 240 suppliers at home and abroad.
