Germany's Praktiker may lose 4,000 jobs after insolvency - report

BERLIN Sat Jul 27, 2013 4:05pm IST

Clouds are pictured above the German do-it-yourself retailer Praktiker in Berlin July 11, 2013. REUTERS/Tobias Schwarz

Clouds are pictured above the German do-it-yourself retailer Praktiker in Berlin July 11, 2013.

Credit: Reuters/Tobias Schwarz

Related Topics

Stocks

   

BERLIN (Reuters) - As many as 4,000 jobs could be lost at German home improvement retailer Praktiker (PRAG.DE) and its Max Bahr chain following insolvency filings, Bild reported on Saturday, citing the group's deputy board chairman.

"That's a shocking number," the newspaper quoted deputy supervisory board chairman Ulrich Kruse as saying.

About a dozen Praktiker stores could shortly be closed, mainly shops that were about to be converted to the Max Bahr brand which traditionally had better profit margins, Wirtschaftswoche reported, without citing the source of the information.

Praktiker said on July 25 that its Max Bahr unit would file for insolvency after a trade credit insurer, named by unions as Coface (CNAT.PA), stopped providing coverage to suppliers.

Praktiker, whose blue and yellow-branded stores selling paints, tools and gardening products are a familiar sight in Germany's out-of-town shopping centres, has been grappling with a decline in sales and profitability since it ended a "20 percent off everything" discount strategy.

(Reporting by Andreas Cremer; Editing by David Holmes)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Economic Pulse

Economic Pulse

New govt promises low and stable tax regime for economic revival.  Full Article 

Global Growth

Global Growth

IMF cuts outlook, warns of stagnation risk in rich nations  Full Article 

Market Eye

Market Eye

Nifty retreats from record highs on profit taking.  Full Article 

Waning Enthusiasm

Waning Enthusiasm

Markets' post-election enthusiasm lost on consumers.  Full Article 

Banking Sector

Banking Sector

Banks not allowed to trade in bonds for infra lending - RBI.  Full Article 

Gold Imports

Gold Imports

Govt has no proposal to reduce gold import duty.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage