A well-known furniture chain, Depot, specialising in furniture and decorative items, has announced its bankruptcy, affecting operations in both Germany and Austria. This financial collapse results in the closure of nearly half of the chain's branches and the loss of more than a third of its workforce.
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There are several reasons for the bankruptcy. Key factors include delays in the supply chain, increased transportation costs, and significant price hikes. Additionally, insolvency protection proceedings had already been initiated against Depot's parent company, Gries Deco Company GmbH, in Germany.
Depot, which saw rapid expansion following its entry into the German market in 2009 under the Swiss retail giant Migros, grew from 109 branches to 500. Despite this growth and a dramatic increase in sales, the company has struggled financially.
The bankruptcy will significantly impact the company's operations and employees, with widespread store closures and job losses expected as Depot seeks to restructure and address its financial challenges.
Source: www.heute.at