• Germany edition
 
Hundreds of great job opportunities for foreign professionals at Germany's top employers - in cooperation with Monster, Experteer, Stepstone, and CareerBuilder.
What
Where
3,493
jobs available
Find English-speaking professionals with The Local.
Advertise a vacancy
Schlecker rescue fails, 13,000 jobs doomed
Photo: DPA

Schlecker rescue fails, 13,000 jobs doomed

Published: 01 Jun 2012 16:23 CET

Receiver Arndt Geiwitz said there was "no prospect of finding an economically justifiable basis to continue Schlecker's operations or of selling it to an investor."

Interested buyers had been given a week from last Friday to improve their offers, with Nicolas Berggruen, owner of department store Karstadt, and American consortium Cerberus reportedly among potential investors. But Geiwtiz revealed that the offers tabled were "not acceptable as they do not approach the values that can be attained by breaking up the company."

The receivers will now proceed with a plan to sell off the 2,800 stores as quickly as possible, as well as foreign subsidiaries and other assets like logistics centres and properties. Only the chain’s German subsidiaries, Ihr Platz and Schlecker XL, which between them employ roughly 5,000 people, will survive, Der Spiegel magazine reported on Friday.

Geiwitz said he regretted that Schlecker’s "many and often long-standing employees" would lose their jobs. This follows the dismissal of 11,000 workers immediately following the bankruptcy in early March. The creditors will now work with the employee organisation to develop a social plan for the affected workers.

Schlecker, founded almost 40 years ago, filed for protection from its creditors in January. The court-appointed administrators attempted to rescue the company by slashing the workforce from 30,000 to 13,500 and reducing the number of outlets from 7,500 to less than 3,000.

Administrators were able to cut Schlecker’s losses from €200 million to roughly €25 million, but according to Geiwitz, the "ambitious but fundamentally feasible" plan to secure an economically viable future for the company foundered on high staff costs and the stringent stipulations of suppliers, as well as 4,400 outstanding unfair dismissal claims.

The giant services sector union Ver.di expressed "anger and disappointment" at the decision, and called for a rally of Schlecker employees outside the Chancellery in Berlin, Der Spiegel magazine said.

Christel Hoffmann, head of Schlecker’s employee organisation, said the news was "a human and social catastrophe for the employees and their families." She called for politicians to intervene.

Meanwhile, an unnamed former director of the company told the Handelsblatt newspaper that the disaster could have been foreseen well in advance. "We have been functioning like a pyramid scheme since the mid-90s," he told the paper. "We were only able to continue through constant expansion."

At its height, Schlecker had more than 8,000 outlets throughout Germany, more than double the number of stores of all its competitors combined.

But with Rossmann and dm stores boasting more attractive locations and a broader range of products – Schlecker never carried medicine – the drugstore chain began to struggle. "Schlecker’s greatest achievement," the anonymous director told the Handelsblatt, "was that it managed to hang on for so long."

AFP/The Local/jpg

The Local (news@thelocal.de)


Don't miss...X
Left Right

Your comments about this article:

The comments below have not been moderated in advance and are not produced by The Local unless clearly stated. Readers are responsible for the content of their own comments. Comments that breach our terms and conditions will be removed.

ADD YOUR COMMENT   (YOU MUST LOG IN OR REGISTER TO MAKE A COMMENT)
Your German Career
What do German bosses need to do to get more out of their staff? Frankfurt-based business consultant Justin Bariso has this advice.
Germany's Federal Employment Agency has identified the job sectors the country is most short of workers for. JobTalk looks at where the vacancies lie.
Students at German universities have shown themselves to be a risk-free lot in a survey by Ernst & Young. The civil service is their most popular choice of future profession, while job security is valued above all else.
Jenny Core, originally from Bolton, England, shares her tips in this week’s My German Career on being an artist in Berlin. The 27-year-old exhibits her work regularly in the city, including next to a Turner Prize shortlister.
In this week's JobTalk, Tanya Schober, who is originally from India, talks us through her journey to German citizenship.
In this week's My German Career, Anupama Gopalakrishna, who is originally from Bangalore in India, tells The Local about her new life in Frankfurt.
German Employment News
The Local speaks to experts from the German startup scene to find out how to get a job at a freshly-minted technology company.
Volkswagen hopes to put more robots to work as it says goodbye to its retiring baby boomer employees, the company's chief of human resources wrote in the Süddeutsche Zeitung on Monday.
The jobmesse deutschland (Job Expo Germany) is rolling into Berlin on Saturday as part of its annual 18-city tour. Here's why you should go if you're looking for a job in Germany.
A new study shows more and more immigrants are starting businesses in Germany, bringing some much-needed entrepreneurial spirit to the country.
It’s not quite as romantic as the Nanny Diaries, nor is it as magical as Mary Poppins. But being an au pair in Germany can be fun, as Emma Anderson finds out.
What kind of companies are hiring foreigners in Germany? And which type of firm should you target for your next career move? Recruitment expert Chris Pyak reveals all to JobTalk.

IELTS Examiners – British Council China
The British Council is recruiting a team of IELTS examiners to be based in one of our four main cities in China: Beijing, Shanghai, Guangzhou or Chongqing. This presents an exciting opportunity for new or current IELTS examiners to work in one of the world’s largest and most dynamic English language assessment environments
FULL JOB AD »

Zalando SE
Berlin
Stepstone
Added 10/22/14

Zalando SE
Berlin
Stepstone
Added 10/22/14

GE Capital
DEU-Bavaria-Oberhaching / München-82041
Stepstone
Added 10/22/14

StepStone Deutschland GmbH
Düsseldorf
Stepstone
Added 10/22/14

Zalando SE
Berlin
Stepstone
Added 10/22/14

Celesio AG
Stuttgart
Stepstone
Added 10/22/14

ENGINEER-ING – eine Marke der JOB AG
Köln
Stepstone
Added 10/22/14

Celesio AG
Stuttgart
Stepstone
Added 10/22/14

METRO AG
Düsseldorf
Stepstone
Added 10/22/14

Spairliners GmbH
Hamburg
Stepstone
Added 10/22/14