Kika/Leiner Bankruptcy Also Affects Many Customers with Vouchers and Deposits

The insolvency administrator Volker Leitner announces that "a large number" of Kika/Leiner customers are affected, whose deposits, for example for a kitchen, cannot be reclaimed due to insolvency laws. There are "many hardship cases". "Unfortunately, insolvency law does not provide for any exceptions or leeway," says Leitner.

Kika/Leiner Insolvency Administrator Checks Customer Orders

The Kika/Leiner insolvency administrator is currently checking which customer orders can be fulfilled according to insolvency regulations. This review should be "largely" completed by the end of this week. For a part of the deposits, "due to properly concluded deposit guarantees, a right of segregation exists," Leitner explained on Wednesday in a statement. The furniture chain has not yet quantified how many vouchers have not yet been redeemed and the total amount of customer deposits.

The furniture deposits are based on a purchase contract. The liquidator could enter into contracts concluded before the opening of insolvency and the customers would then receive the ordered goods from Kika/Leiner upon payment of the complete invoice. "In many cases, it will probably happen that the insolvency administrator does not enter into these contracts and then the deposits made are usually unfortunately only to be registered as insolvency claims in the insolvency proceedings," said Maximilian Eder from the Association for Consumer Information (VKI) on Thursday in the Ö1 "Morning Journal" of ORF radio.

The furniture chain has been in crisis for several years, since 2013 there have been three changes of ownership. In 2023, Rene Benko's Signa sold the Kika/Leiner properties to the Graz Supernova and the operational furniture business to the trade manager Hermann Wieser. Shortly thereafter, the company filed for bankruptcy, 23 of 40 branches were closed in the course of the first restructuring. After the second bankruptcy in November 2024, Wieser could not raise fresh financial resources or find an investor. However, the business conduct is to be examined, says creditor protector Stephan Mazal from Creditreform: "Why multi-year lease contracts were concluded in October 2024 is definitely to be questioned," says the insolvency expert.

Surprise Over Rapid Kika/Leiner Bankruptcy

With the bankruptcy, the furniture store Kika/Leiner is finally facing the end after more than a hundred years of existence. Given the double insolvency, this was foreseeable - but that it ultimately happened so quickly is somewhat surprising for Creditreform Managing Director Gerhard Weinhofer given the planned restructuring. "If you want a restructuring, you also have to think about continuation," he said on Thursday to APA.

The fact that the business operation was only possible for such a short time, "does surprise me," says the creditor protector. Because: There was still time until the decision on the acceptance or rejection of a restructuring plan. Obviously, there were difficulties in not taking on any further debts in the course of the insolvency proceedings, says Weinhofer. The company was probably hoping for a new investor quickly, who was not found.

Kika/Leiner Vouchers as Claims in Bankruptcy Proceedings

For vouchers, affected customers can register the voucher value as a claim at the St. Pölten Regional Court, the competent insolvency court. The registration costs 25 euros. How much voucher owners get back depends on the outcome of the settlement. The quota in a bankruptcy is usually only a small percentage of the voucher value.

The Kika/Leiner restructuring plan meeting scheduled for February 21, 2025, was cancelled due to the conversion into bankruptcy proceedings. Instead, the general examination meeting originally scheduled for January 17, 2025, was moved to this date. "At the general examination meeting, the timely registered claims of the creditors are examined," says creditor protector Mazal. Although the deadline for creditors to register claims remains the same on January 10, 2025, the administrator has more time to review the registrations. "Given the expected large number of claim registrations, the administrator will also need this time," Mazal said.

Kika/Leiner's Liabilities Will Exceed 139 Million Euros

In addition to employee claims, the creditor protector expects numerous registrations from deposit creditors and claims for damages for the Kika/Leiner bankruptcy proceedings. In the event of the failure of the restructuring, the furniture chain had already stated the liabilities (liabilities) in the insolvency application in mid-November at 139 million euros.

After the goods sale at Kika/Leiner, the insolvency administrator may close the remaining 17 locations in January or February. 1,350 employees of the furniture chain will then lose their jobs. Competitor XXXLutz wants to take over part of the affected. The Welser furniture giant recently had numerous open jobs in sales, administration, and logistics. "Our doors are open," said XXXLutz manager Thomas Saliger in mid-November to APA. Among others, the Austrian Post, Ikea, and McDonald's have offered jobs to Kika/Leiner employees.

Kika/Leiner central works council chairman Herbert Sulzer still hopes for an investor and restructuring. "Maybe someone still has the idea that they could save us," Sulzer said on Thursday in the Ö1 "Mittagsjournal" of ORF radio. The GPA union, on the other hand, is pushing for a job foundation for employees of the furniture chain who lose their jobs. "We have talks next week and will then inform the employees about it," the works council chairman announced with regard to the job foundation.

(APA/Red)

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