Kodi closes 43 branches and headquarters in Oberhausen

The branch network of the insolvent household goods discounter Kodi is being significantly thinned out. As the company announced, 43 of the 144 locations as well as the headquarters in Oberhausen will be closed. So far, Kodi has almost 1,200 employees and 265 have been laid off. A company called Kodi Retail GmbH, which is backed by an international group of investors, is reportedly taking over 100 branches where the Kodi brand will remain. No decision has yet been made for one of the locations.

The inventory and other assets were taken over from the insolvent company Kodi Handels GmbH. How much the investors paid was not known. In addition, the district court of Halle an der Saale (Saxony-Anhalt) opened insolvency proceedings in the self-administration of Kodi Handels GmbH.

Three weeks ago it was announced that 19 Kodi stores were to be closed. The future of 56 stores was still unclear. Now it is clear that some of them will also be abandoned. It is regrettable that there is no economically viable solution for these locations and that jobs will be lost as a result, explained Fabian Grund, Managing Director of Kodi Handels GmbH. But he is very pleased that the other branches will be retained and that many employees will have a perspective. It is also good that the Kodi brand will be continued.

The Kodi general representative and lawyer Dirk Andres spoke of a viable solution in a difficult economic environment.

Why things went downhill

Branches will be closed in Aachen, Ahaus, Emmerich, Erkelenz, Herzogenrath, Jülich, Tönisvorst and Würselen (all in North Rhine-Westphalia) - these are cities where there is only one Kodi branch. In Düsseldorf, eight of nine locations will remain, in Duisburg five of eight, and in Krefeld all three will remain. Four out of eleven branches will be closed in Cologne and four out of six in Wuppertal.

According to the company, the fact that Kodi slipped into bankruptcy was due to weak consumer sentiment, increasing competitive pressure from digital business models, rising non-wage labor costs, high energy costs and high rental costs.

Stationary retail is under pressure, Kodi is not an isolated case. The decorative chain Depot was hit this year; the company behind it ceased operations at the end of September. The hardware store chain Hellweg and the BayWa DIY and garden centers applied for restructuring proceedings under self-administration in June. The companies should be wound up and their brands given up. Other retailers take over some of the branches.