After the German subsidiary of the discounter Pepco filed for bankruptcy in July, the restructuring concept for Pepco Germany GmbH was presented on Tuesday. This involves significant cuts in the branch network.
In the past few weeks, management has “carried out an extensive analysis of the branch network in Germany and the economic prospects of each individual store,” the company said in a statement. 36 of the 64 stores so far were “rated as promising”.
The remaining 28 branches will now be “closed until the end of January 2026 after the end of the usual sales measures due to a lack of economic prospects”. In addition, “the administration in Berlin will be streamlined”. According to the company, these decisions affect around 165 of Pepco’s 500 employees in Germany. These will “soon receive notices of termination in accordance with the insolvency law regulations”.
The insolvency proceedings under self-administration were opened on October 1st
According to the announcement, the self-administration procedure for Pepco Germany GmbH was opened on October 1st. “The implementation of the now completed restructuring concept, which the creditors’ committee has already approved, will take place via an insolvency plan,” explained the retailer. The aim is to “create a solid basis for future profitable growth” through the cuts that have now been announced.
Restructuring managing director Christian Stoffler commented on the current status. “The planned realignment of Pepco in Germany is an essential step for sustainable profitability on the basis of a leaner and more resilient operational basis. In this way, we are achieving the main goal of the self-administration process,” he explained in a statement. “My express thanks go to those landlords who are making their contribution to the success of the restructuring. I would also like to thank all employees who, despite the uncertainties of the past few months, have shown great commitment in stabilizing business operations and serving our customers in the stores as before.”