A discount retailer is undergoing a turbulent restructuring process, with closures and job losses continuing amid ongoing insolvency proceedings. Although operations will continue in parts of the network, a significant number of employees face uncertainty.
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Kodi Diskontläden GmbH, based in Oberhausen, Germany, is closing 80 of its branches as part of an insolvency sale. Around 480 branch workers and 40 head office staff have already been made redundant. Talks with potential investors are ongoing, with the full sale expected to conclude by the end of May or June.
The closures hit North Rhine-Westphalia hardest, where 64 branches are affected. However, there is relief for many employees: an investor group led by former Kodi shareholder Richard Nölle is taking over the assets of the company retroactively to 1 April 2025. This agreement, now approved by the creditors' committee, ensures the continuation of 150 stores and preserves approximately 1,200 jobs.
The branches will continue operating under the Kodi brand name.
Founded in 1981, Kodi filed for self-administered insolvency in November due to "impending insolvency and excessive indebtedness". Proceedings were formally opened by Duisburg District Court on 1 March 2025.
According to company statements, the financial crisis was triggered by a combination of reduced customer spending and rising costs in energy, freight and advertising. Despite initial restructuring efforts, the scale of the cost burden proved insurmountable, forcing the company to seek new ownership under insolvency supervision.
While the future of many locations remains in doubt, the partial takeover marks a stabilising step forward for the long-standing retailer.
Source: www.t-online.de