Advertisement

Govt confirms rescue of troubled Kaiser's supermarket

DPA/The Local
DPA/The Local - [email protected]
Govt confirms rescue of troubled Kaiser's supermarket
Photo: DPA

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.

Advertisement

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.”

More

Join the conversation in our comments section below. Share your own views and experience and if you have a question or suggestion for our journalists then email us at [email protected].
Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.

Please log in to leave a comment.

See Also