Insolvency administrator: 30 of 41 Groschen stores to remain

Good news for the majority of employees at bargain retailer Groschen-Markt: according to the insolvency administrator, talks with potential lenders are "nearing completion". Three quarters of the existing 41 stores and the jobs there are to be retained, according to a spokeswoman for the insolvency administrator Olaf Spiekermann. Groschen stores are located in Thuringia, Saxony, Saxony-Anhalt and Brandenburg.

The company behind the stores is DEC Handelsgesellschaft mbH. The company, which is more than 30 years old and based in Dingelstädt in Thuringia (Eichsfeld district), filed for insolvency proceedings at the beginning of December this year. According to the information provided, these are expected to be opened on April 1 at Mühlhausen Local Court.

Old store, new concept

According to the company, 190 people work for the company, around 170 of them in the Groschen-Markt stores. Talks are currently underway with three "well-known investors", the spokesperson explained. As things stand, more than 30 stores should be able to be retained, it said.

However, no brand names or locations can yet be named. The three interested parties want to continue to operate the stores under their own names. Only once insolvency proceedings have been opened could contracts be concluded with investors to purchase the business operations. As the investors are bringing their own concepts for the locations, there will be a sale in the Groschen stores after the opening of proceedings in April. The product range includes household goods, decorative and DIY items and stationery.

Consumer restraint and changed market situation reason for insolvency

"We are trying to save every job. However, as Groschen Markt is a tenant, the future solution for each store requires the consent of the respective landlord," explained Spiekermann. A bid for the acquisition of all Groschen Markt stores or for the company name had not been received.

In December, the reason for the company's financial difficulties was cited as consumer restraint and structural change in the retail sector.

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 in Germany and abroad.