Economy Minister Sigmar Gabriel confirmed on Monday that an agreement has been reached to save troubled supermarket Kaiser's Tengelmann, after the chain appeared to be heading for closure.
Gabriel said that 15,000 jobs had been secured through the deal and claimed employees could now look forward to Christmas without having to worry about their futures.
It had appeared that outlets and factories would start being sold off by the firm after competitor Rewe blocked a takeover of the chain by Edeka, Germany’s largest supermarket.
On October 14th, the company had told employees to expect mass job losses across its 400 stores nationwide. But hope that a deal could unexpectedly be reached was revived when ex-Chancellor Gerhard Schröder stepped in to mediate renewed talks.
Rewe has now agreed to withdraw its lawsuit against the takeover by November 11th at the latest, dependent on an independent review of the cost of the sale.
As part of the deal, Edeka has also guaranteed jobs for Kaiser’s Tengelmann's 15,000 employees for seven years.
Gabriel said he was confident that “there will not be anymore obstacles to the implementation of the deal.”