Insolvent Discount Store: Half of Its Stores Will Continue Operations

About half of the stores belonging to Groschen Markt, an insolvent discount chain operating primarily in eastern Germany, will continue to operate. According to the insolvency administrator, buyers have been found for 22 of the 41 stores. For the most part, however, the locations will continue under new names. Only in Thuringia will the brand be retained at three stores.

According to an overview provided by the insolvency administrator, ten stores in Thuringia, six in Saxony-Anhalt, four in Saxony, and two in Brandenburg will continue operations.

Company: Consumer Reluctance Led to Bankruptcy

DEC Handelsgesellschaft mbH, the company behind the stores, filed for bankruptcy in December. The reason was ongoing consumer reluctance. As recently as March, there had initially been talk that 30 of the 41 stores could be saved. According to the company, the Groschen stores employed 170 people. About 80 jobs were saved, explained insolvency administrator Olaf Spiekermann. The negotiations had been protracted, especially given the difficult market environment. Another takeover is expected in November.